Lightstream Resources Ltd : Strong downward movement
By Josselin Giraud
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
CA$10.73 | CA$0 | CA$11.74 | +100% |
The fundamental situation of the company remains fragile. Currently, the company is trading 3.43 times its sales, which is still a significant valuation for the company.
Technically, the share is in a downward trend. The moving averages are decreasing and are still above prices, thereby stopping any rebounds. The security is going toward the CAD 9.7 support, a level that will represent the first target.
Therefore, we could take a short position to benefit from the downward trend. The security could quickly go toward the next support area located at CAD 9.7. A stop loss will be placed on the CAD 11.6 mid-term resistance. If this threshold is crossed, this bearish strategy will be cancelled.