Both fundamental and technical situations suggest a correction on Synthomer shares in the short term.

The company shows signs of weakness in terms of growth: Sales and EPS are expected to decrease in the upcoming year. Analysts keep revising downward their EPS estimates.

Technically, the security is likely to run out of steam close to the GBp 238 resistance area. Prices went below the 20 day moving average. In this context, the downward movement could improve and it should expect a return to the GBp 208 pivot point. Indicators that show an overbought situation confirm this scenario.

Those elements lead us to predict a consolidation phase, at least in the short term. Therefore, in order to take advantage of this scenario, a short position may be opened in the current area to target GBp 208. In case of further acceleration, the stop loss will be triggered above the GBp 239.2.