Hyve Group Plc : The bearish trend might get the upper hand
By Pierre Gilles de la Londe
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 154.5 | GBX 0 | GBX 169.65 | +100% |
From a fundamental viewpoint, the group has not sufficient quality to hope for a continuation of its bullish trend. Indeed, Surperformance rating largely punishes ITE Group because of an excessive valuation with an EV/Sales ratio higher than its peers.
From a technical viewpoint, the security is in a bearish trend in the long and mid-term, even if prices have increased in the short term. The current technical rebound allows the stock to be close to its GBp 158.3 resistance. Despite the breakout of the 20-week moving average, prices should decrease soon because of the bearish trend in the long term.
Therefore, fragile fundamentals and technical pattern let see a downside potential. Investors can take a short position at current prices and aim a return in the GBp 128 support area. A stop loss will be fixed above GBp 158.3 because a breakout of this threshold would invalidate this trading strategy.