The present configuration of TeleCity Group could aim for the end of the technical recovery.

Regarding fundamentals, analysts have recently downgraded their EPS expectations. This kind of situation often suggests a correction phase.

From a technical viewpoint, the proximity of the GBp 806 medium-term resistance limits the upside potential of the stock. The uptrend in the short term could be stopped by this level and prices could sharply decrease in the coming sessions. Technical indicators also show an overbought situation that reinforces this bearish scenario.

The technical configuration and fundamentals lead us to predict a consolidation phase, at least in the short term. The GBp 806 should play its full role and stop the upward trend initiated in the short term. Therefore, to take advantage of this technical correction, a short position may be opened in the current area to target GBp 734. In case of further acceleration, the stop loss will be triggered above the GBp 806.