Pinnacle West Capital Corporation : Short momentum
By Oscar Salza
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$47.45 | $0 | $49 | +100% |
According to Thomson-Reuters’ consensus the company seems correctly valued with a price earnings ratio of 14 for this financial year. Earnings per share for 2013 is regularly revised upward by analysts covering the enterprise.
Technically, since December the share is moving within a trading range of 46 and 48.7 USD. In the past trading sessions we assisted at strong acceleration which pushes the share close to resistance area of 48 USD. In this area we can find both short and long-term resistance. This area could stop the upward trend, and push the share on the support level of 46.5 USD. We suggest active investors to enter a short position at this price. A stop loss, situated at 49 USD is necessary in order to cover the position.