Shire : Sellers pressure likely to dominate
Entry price | Target | Stop-loss | Potential |
---|
GBX 5,470 |
GBX 0 |
GBX 5,650 |
+100% |
---|
Shire reaches a level of strong resistance. This level could counteract the upward trend in the short term.
From a fundamental viewpoint, analysts have recently revised sharply downward their EPS estimates. This situation could feed some profit taking in the short run.
Graphically, the share is in a period of technical rebound that allowed it to reach the GBp 5455 mid-term resistance. This area could trigger a sell signal for investors in case of profit-taking. Furthermore, the rallying of the GBp 5065 support area will be considered for upcoming sessions.
The upside seems limited as shown by fundamentals and technical configuration. In contact with the GBp 5455 resistance, a movement of consolidation could return the stock towards the GBp 5065 mid-term support. As a result, the most aggressive investors could take a short position near GBp 5455 but they need to set a stop loss above this resistance because the crossing of this level would invalidate our scenario.
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