Vallourec : A downturn could form
November 23, 2012 at 03:53 am EST
By
Entry price | Target | Stop-loss | Potential |
---|
€38 |
€0 |
€41.94 |
+100% |
---|
The upward trend seems to be run out of steam. The downward trend could recover.
Graphically, the stock went through a period of rebound in recent sessions towards the EUR 39.4 medium-term resistance. The share should consolidate near this area. It could act as a stopping point of the upward movement. This scenario suggests a return to the EUR 34.3 support area which will be a bearish objective.
Therefore, the most offensive investor can benefit from the technical configuration to take a short position. The objective will be fixed near to the EUR 34.3 support. Only the breakdown of this level would open up new bearish targets toward EUR 25.9. The stop loss will be set above EUR 39.4.
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