Capita plc : Sellers pressure likely to dominate
By Pierre Gilles de la Londe
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 1,222 | GBX 0 | GBX 1,280.5 | +100% |
This strategy is mainly based on technical arguments.
Graphically, the bearish trend dominates in the medium and short term. Indicators highlighted an overbought situation in recent sessions. These indicators shows a limited potential for a possible breakout near the midterm resistance at GBp 1232.
Therefore, the proximity of mid-term resistance suggests a consolidation or a correction phase in the coming sessions. The most offensive will open a short position close to GBp 1232 to target a return on the GBp 1135 support. It should protect the position with a stop loss set above GBp 1232.