Vedanta Resources : The correction could continue
Entry price | Target | Stop-loss | Potential |
---|
GBX 247.2 |
GBX 0 |
GBX 278 |
+100% |
---|
In a bearish trend, Vedanta Resources continues to decline and going to down again.
The company is fragile. Financially, the group is in a difficult situation with a high leverage estimated at 2.26 for the current year. Forecasts downgraded by analysts regarding earnings per share reflect the lack of visibility in the short-term.
From a technical viewpoint, prices are in a downward trend. Moving averages are trending down and put pressure on the stock, which confirms this downward momentum. This trend may continue toward the GBp 188.7 support.
Investors could open a short trade to target the GBp 188.7 support. A stop-loss is placed above the GBp 263 pivot point, threshold that would invalidate the bearish strategy.
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