Heartland Financial USA, Inc. : The top of the range to initiate a correction
By Bastien Chabasseuil
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$29.62 | $28.06 | $30.7 | +5.27% |
The fundamentals remain very fragile. EPS estimates has been sharply revised for the last 12 months. A 14% decreasing revisions on EPS underlines some difficulties to respect the forecasts done by the company.
Graphically, the share is in a period of technical rebound that allowed it to reach the USD 30 mid-term resistance. This area could trigger a sell signal for investors in order to target the bottom of a large range initiate in may. Furthermore, the rallying of the USD 28.06 support could be a first step in direction of the bottom of the range. The breakout of the middle of the range should allow to target the USD 26.18 mid-term support.
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 USD 30 to target a return on the USD 28.1 support. It's important to protect the position with a stop loss set above USD 30.