SIG plc : Anticipation of a bearish reversal
Entry price | Target | Stop-loss | Potential |
---|
GBX 187.6 |
GBX 0 |
GBX 196.1 |
+100% |
---|
SIG share could start a technical downward trend after the rebound in recent sessions.
The company seems to have reached the average GBp 1990 target price set by analysts, which is likely to lead to some profit taking. Moreover, analysts have downgraded their 2015 EPS estimates.
Graphically, the share is in a period of technical rebound that allowed it to reach the GBp 189.5 mid-term resistance. This area could trigger a sell signal for investors in case of profit-taking. Furthermore, the rallying of the GBp 144.8 support area will be considered for upcoming sessions.
The upside seems limited as shown by fundamentals and technical configuration. In contact with the GBp 189.5 resistance, a movement of consolidation could return the stock towards the GBp 174.3 mid-term support. As a result, the most aggressive investors could open a short position on the current prices but they need to set a stop loss above this resistance because the crossing of this level would invalidate our scenario.
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