Navistar International Corporation : Downward reversal
Entry price | Target | Stop-loss | Potential |
---|
US$35.05 |
US$0 |
US$36.9 |
+100% |
---|
Navistar International stock is likley to drop in the upcoming trading sessions.
The vehicle manufacturer posted recently a loss worse than expected in its fourth quarter: it reported a net loss of 72 million dollars or -88 cents per share while analysts forecasted a profit of 8.53 million and 21 cents EPS.
Technically, the stock is trading in a neutral trend on all time scales. Prices fell upon contact with the USD 37.8 short term resistance and crossed down moving averages both on daily and weekly data. This should support the bearish movement towards the USD 32.45 pivot point then the USD 29.9 support.
Thus, most offensive should take advantage of this bearish scenario by opening short positions on the stock. The target price will be set at USD 32.4 then USD 29.9. However, for a risk management matter, a stop loss will be placed over the USD 36.82 pivot point.
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