De La Rue plc : Anticipation of a bearish reversal
March 26, 2013 at 09:23 am
By
Entry price | Target | Stop-loss | Potential |
---|
GBX 965 |
GBX 0 |
GBX 987.5 |
+100% |
---|
After a technical rebound, the stock is showing signs of weaknesses near to the GBp 967 resistance.
Technically, the security could run out of steam close to the GBp 967 resistance. Indeed, the stock is moving in an upward trend in the short term but it could know a halt. In this context, the downward movement could improve and it should expect a return to GBp 926. Indicators that show an overbought situation confirm this scenario.
The graphical configuration argues to establish a short position at the current price. The end of the technical rebound, the consolidation phase and overbought situation: De La Rue has all the characteristics for short selling. The first objective will be fixed near the GBp 926 short term support and by extension the GBp 891.5 area. This strategy should be protected by a stop loss above GBp 967.
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