Telecity show signals of entrenched bear development.

Financials on the company are no longer as stark as they were. Its incapacity to generate better yearly results than those estimated, tied to low yields (only 1.81% awaited for the ongoing fiscal year) are weakening analysts’ overview and reliability on the IT consultant. Therefore, analysts polled by Thomson-Reuters revised downwards Telecity’s future EPS during the last 12 months (-13% for 2014 and -17% for 2015).

The stock shows a progressive deterioration, clearly shaped by technical patterns. It evolves within a symmetrical triangle since mid 2013. Moreover, the depression of financial statements got Telecity inside a long run bearish trend lately confirmed by the second upper wave. With all weekly moving averages downgraded, likelihood of further falls increase as time goes. Otherwise, the movement of daily moving averages does not represent a significant obstacle for prices to fold near the USD 631 support.

Thus, short positions could be opened by investors at current prices, having as target the GBp 631 support. The stop-loss order could be placed over the short term resistance at GBp 738.8.