Brady Corp reaches a level of resistance. This area could contain the upward trend in the short term.

Analysts from the Thomson Reuters consensus regularly revise downward their EPS estimates.

From a technical viewpoint, the proximity of the USD 35.5 short-term resistance limits the upside potential of the stock. The uptrend in the short term could be stopped by this level and prices could decrease sharply in the coming sessions. Technical indicators also show an overbought situation that reinforces this bearish scenario. Thus, there is a higher downside potential than upside.

Therefore, the proximity of the resistance suggests a consolidation or a correction phase in the coming sessions. The most offensive will open a short position at the current price to target a return on the USD 33.1 support. It should protect the position with a stop loss set above USD 36.3.