Radian Group Inc. : Upward target has been reached...
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
US$17.38 | US$0 | US$17.8 | +100% |
The company is still displaying poor fundamentals.
Graphically, the stock went through a period of rebound in recent sessions towards the USD 17.5 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 USD 16.3 support area which will be a bearish objective.
Due to the technical patterns and poor quality fundamentals that do not justify a new upward movement, investors can open a short position close to the USD 17.5 resistance. The price target being set at USD 16.3, a stop-loss order could be placed above USD 17.5 in order to limit further risks.