ICAP plc : Sellers pressure likely to dominate
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 411.6 | GBX 0 | GBX 428 | +100% |
Month after month, EPS are revised downward. The same situation is visible on the revenues. Most of analysts are pesimistic on the stock and the average price is 10% below the current price.
Graphically, the share is in a period of technical rebound that allowed it to reach the GBp 425 mid-term resistance. This area could trigger a sell signal for investors in case of profit-taking. Furthermore, the rallying of the GBp 380.3 support area will be considered for upcoming sessions.
The technical configuration and fundamentals lead us to predict a consolidation phase, at least in the short term. The GBp 417/425 resistance area should play its full role and 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 380.3. In case of further acceleration, the stop loss will be triggered above the GBp 425.