Beacon Roofing Supply, Inc. : Downward trend confirmed
Entry price | Target | Stop-loss | Potential |
---|
$25.05 |
$23.15 |
$25.7 |
+7.58% |
---|
The company is fragile. Forecasts downgraded by analysts regarding earnings per share reflect the lack of visibility in the short term.
Indeed, for one year, 2014 EPS have been reduced of around 40%.
Technically, the share is in a downward trend. The moving averages are decreasing and are still above prices, thereby stopping any rebounds. The security is going toward the USD 24.95 support, a level that will probably broke down in the next trading sessions.
Investors could take a short position in Beacon Roofing Supply when the support will be broke. The target will thereby calculated by swing effect (USD 23.15).
They will also place a stop-loss order at USD 25.7, level that would invalidate our bearish strategy.
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