Dixons Retail PLC reaches a level of resistance. This level could contain the upward trend in the short term.

From a technical viewpoint, the proximity of the GBp 19.6 medium-term resistance limits the upside potential on 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.

The configuration lead us to predict a consolidation phase, at least in the short term. The GBp 19.6 should play its full role and to stop the upward trend initiated in the short term. Therefore, to take advantage of this technical correction, a short position may be opened in the current area to target GBp 17. In case of further acceleration, the stop loss will be triggered above the GBp 19.6.