First Niagara Financial Group Inc. : Near to a turning point
By Maxime Nonglaton
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
US$7.66 | US$0 | US$7.7 | +100% |
After several trading sessions, the stock is about to break the USD 7.51 support. The pressure of the 20-day moving average has entailed the decline of the share. The security could plummet to USD 7.1.
The company has a high level of valuation as shown by the “enterprise value/revenue” ratio at 2.01x for the current year. Besides, according to the analysts polled by Thomson Reuters, the earnings per share have been recently downgraded.
A short position may be initiated on the stock once the USD 7.5 support is broken. The target price is set at USD 6.8, a potential of 10%. A stop loss will be placed above the USD 7.7 support. The breakdown of this threshold would invalidate the bearish strategy.