Turquoise Hill Resources Ltd. : Downward momentum!
Entry price | Target | Stop-loss | Potential |
---|
$7.83 |
$0 |
$8.86 |
+100% |
---|
The downward path seems to continue on the Canadian mineral company toward CAD 6.63.
The company is fragile. Financially, the group is in a difficult situation with a high leverage estimated at 2.19 for the current year. Forecasts downgraded by analysts regarding earnings per share reflect the lack of visibility in the short term.
Graphically, we can see that the stock is in a bearish trend with decreasing moving averages, which serve as slant resistance. The security is moving towards CAD 6.65 in daily data, the next support area.
Investors could take a short position in Turquoise Hill Resources to target CAD 6.65. They will also place a stop loss above the CAD 8.56 resistance area, level that would invalidate our bearish strategy.
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