Aurubis AG : The midterm resistance, a key bearish reversal
By Rosanna Santana
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
€42.3 | €36 | €44.3 | +14.89% |
Company’s sales are awaited at lower levels than those registered in prior year, meaning a decrease of almost 3%. In fact, revisions made by analysts polled by Thomson-Reuters have been continually downgraded both in terms of Sales estimates and EPS. Sales are now anticipated at €11,985 million from €14,353 million twelve months ago, while EPS dropped near €2.8 per share from €5.15 in April 2013.
In spite of efforts made to fulfill expectations, the equity still underperforming and the present bullish trend could suffers a bearish reverse in the short term. Prices will be approaching a strengthened resistance level that should return them toward the EUR 36 support, forming this way a double top pattern. In addition, weekly moving averages orientation advocates a continuous decline.
Considering fundamental and technical analysis, investors could take a short position once prices are around the EUR 42.3 resistance seeking for the EUR 36 target (with a first goal at EUR 38.4). The stop-loss order would be placed above the entry point at EUR 44.3.