Arm Holdings plc : Bearish signals appearing
Entry price | Target | Stop-loss | Potential |
---|
$941 |
$0 |
$971 |
+100% |
---|
ARM Holdings share is approaching a technical resistance and could return to a bearish configuration.
The security seems overvalued: the valuation of the group in terms of multiples of earnings appear relatively high. Currently, share price is 50.5 times its expected earnings per share for the current year. Moreover, analysts have recently downgraded their EPS estimates.
Technically, the neutral trend dominates in the medium and the short term. Indicators highlighted an overbought situation in recent sessions. This indicator shows a limited potential for a possible recovery due to the midterm resistance at GBp 963.
Due to the technical configuration and a fragile fundamental situation that does not justify the current valuation of the group, investors can open a short position on the stock close to the GBp 963 resistance. The price target is set at GBp 915.5 and a stop loss will be placed above GBp 963.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.