DS Smith Plc : Anticipation of a bearish reversal
April 29, 2013 at 03:58 am
By
Entry price | Target | Stop-loss | Potential |
---|
GBX 236.7 |
GBX 0 |
GBX 247.2 |
+100% |
---|
Indicators argue for a technical correction after the last bullish movement recorded in past sessions.
From a fundamental viewpoint, the company seems to be overvalued as shown by the PER 2013 estimated at 21.4x.
The graphical configuration argues to establish a short position at the current price. The end of the technical rebound, the consolidation phase and overbought situation: DS Smith has all the characteristics for short selling. The first objective will be fixed near the GBp 223.2 short term support and by extension the GBp 197.5 area. This strategy should be protected by a stop loss above GBp 238.5.
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