Inchcape plc : Bearish signals appears
By Anas Boumedian
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 687.5 | GBX 0 | GBX 704 | +100% |
From a fundamental viewpoint, the automotive distributor and retailer said recently that it produced a strong performance in the third quarter but its revenue growth for the period has been hit by the sterling rates. Third quarter revenue was GBP 1.7 billion, up 10.6% on a constant currency basis but up only 4.4% at actual currency rates. Comparable revenue increased 11.6% at constant currency, but only 6% in actual rates.
Graphically, the share is in a period of technical rebound that allowed it to reach the GBp 695.5 mid-term resistance. This area could trigger a sell signal for investors in case of profit-taking. Furthermore, the rallying of the GBp 600.5 support area will be considered for upcoming sessions.
The upside seems limited as shown by those elements. In contact with the GBp 695.5 resistance, a movement of consolidation could send the stock towards the GBp 650 mid-term support. As a result, the most aggressive investors could take a short position near GBp 695.5 but they need to set a stop loss above this resistance because the crossing of this level would invalidate our scenario.