Rolls-Royce Holdings plc : A technical correction is coming
March 09, 2015 at 09:45 am
By
Entry price | Target | Stop-loss | Potential |
---|
GBX 992 |
GBX 0 |
GBX 1,029 |
+100% |
---|
The Rolls-Royce Holding share is approaching a technical resistance and could return to a bearish configuration.
Over the last 12 months, the great majority of analysts EPS estimates have been downgraded. Moreover, the net income has known a sharp drop in 2014 (-95%).
Graphically, the stock went through a period of rebound in recent sessions towards the GBp 998 medium-term resistance. It could act as a stopping point of the upward movement. Then the share should consolidate near this area. Those characteristics as well the overbought situation argue to establish a short position at the current price.
The first objective will be fixed near the GBp 934.5 short term support. This strategy should be protected by a stop loss set at GBp 1029.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.