Essar Energy PLC : Wait the breakdown of GBp 100 level
Entry price | Target | Stop-loss | Potential |
---|
GBX 100.3 |
GBX 100 |
GBX 0 |
+0.3% |
---|
Essar Energy Limited is an integrated energy company. The Company, through its subsidiaries, operates its oil & gas business, and focused on India. The company is listed on the London Stock Exchange and made its entry into FTSE 100 Index in June 2010. The share was introduced at GBp 420 in April 2010. In India, the company operates its oil and gas business through Essar Oil, which is listed on the Bombay Stock Exchange and the National Stock Exchange of India.
The company suffered the natural gas low price and the weakness of India economy. Turnover is expected in strong growth +56% YoY, but at the same time the earnings per share is expected to $0.07 against $0.10 for FY 2011.
The share is in strong bearish trend. In daily data the stock is testing the mid-term support at GBp 100. This level could give an opportunity for a technical rebound. In weekly data the bearish scenario is still set up. The stock has broken down the support level of GBp 111 and has continued its downward movement. We suggest a short position in the case of breakdown of daily support. In this case the share could reach the target of GBp 72.
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