The come back to the resistance at GBp 1199 may stimulate prices' collapse toward the support.

The firm poor Surperformance ratings underlines the unattractive valuation, the high P/E ratio and the negative EPS and sales estimates revisions. Indeed, the stock has already reached the consensus average target price. Moreover, EBITDA is expected to decrease in 2015.

Since early 2015, the security has been consolidating within a large range limited by the GBp 1068/1199 thresholds. The stock has lately known a surge in prices since its last contact with the GBp 1068 support. After two upward gaps, the bullish trend is likely to be stopped by the GBp 1199 resistance. Furthermore, technical indicators are showing an overbought situation.

Consequently, most active investors could open seller positions on Smith & Nephew close to the resistance area. The target is being set at GBp 1156 and by extension the GBp 1122. A stop loss could be placed at GBp 1216.