Polymetal International plc : Time to sell
By Camille Chretien
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 658 | GBX 0 | GBX 692 | +100% |
From a fundamental viewpoint, the group has not sufficient quality to hope for a continuation of its bullish trend. Indeed, Surperformance rating largely punishes Polymetal International because of an excessive valuation with an EV/Sales ratio higher than its peers. Despite an anticipation of leverage improvement for the next two years, the financial situation of the company is still fragile.
Technically, the security had a technical rebound but there is still a bearish trend in the mid-term. The bullish impetus should be stopped in the coming trading sessions by the GBp 703 resistance and the 100-day moving average.
Investors can anticipate a return toward the 50-day moving average, currently at GBp 590, in the coming trading sessions. They can take a short position in Polymetal International. A stop loss order could be placed above GBp 685, crossing point of the 100-day moving average.