COPT Defense Properties : Still a bearish bias
Entry price | Target | Stop-loss | Potential |
---|
$24.45 |
$0 |
$25.4 |
+100% |
---|
The technical rebound of Corporate Office Properties Trust will be faced to a strong resistance in the coming sessions.
Compared to its fundamentals and its peers, the company seems overvalued. The company has real difficulties to be profitable and is paid 25 times its EPS for 2014.
Graphically, the security is trading in a bearish trend for a long time. In the short-term, the stock has rebounded on the USD 21.8 support area toward its mid-term resistance. This rebound seems technical and is not likely to continue. Indeed, weekly moving averages in the long-term are still neutral and the strong resistance at USD 25 offers a selling opportunity.
Thanks to financial information above-mentioned, investors can open a short position in Corporate Office Properties Trust. The target price is USD 23.1 (short-term support). This strategy would be invalidated if the security crosses the USD 25 resistance.
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