Eurasian Natural Resources Corporation : Strong downward movement
By Maxime Nonglaton
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 315 | GBX 0 | GBX 340 | +100% |
Eurasian Natural Resources is in downward trend and there are not technical levels allowing it to rebound.
The company is fragile. Forecasts downgraded by analysts regarding earnings per share reflect the lack of visibility in the short term. This indicator is often a precursor of a declining profitability and a worsening climate of investor confidence.
Technically, the share is in a downward trend. The moving averages are decreasing and are still above prices, thereby stopping any rebounds. Moreover, the stock recently cross its tend line support and there is no further support area. The security is going toward the GBp 270 support, a level that will represent the first target.
Therefore, we could take a short position to benefit from the downward trend. The security could quickly go toward the next GBp 270 support area located. A stop loss will be placed at GBp 340. If this threshold is crossed, this bearish strategy will be cancelled.