Ladbrokes Coral : Anticipation of a bearish reversal
By Florian Girard
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 121.1 | GBX 0 | GBX 127 | +100% |
Fundamentally, earning per share were downward revised over the last 12 months. Moreover, the stock is currently approximately 5% above the consensus average target price.
Following a bearish trend, the stock unexpectedly surge on contact with the GBp 102 support. It is now approaching the GBp 124 resistance, a threshold that should stop the recent rebound. In addition an oversold situation should entice a fall toward short term supports.
Consequently, active investors may open a short position now and target the GBp 109.2 area. A stop loss order should be set at GBp 127.