Indicators argue for a technical correction after the last bullish movement recorded in last sessions.
From a fundamental viewpoint, analysts have recently downgraded their EPS expectations for 2014 and 2015. This situation could lead to some profit taking from investors.
After a substantial upturn, the stock now approaches the resistance at USD 52.6, fact that could inverse the tendency. In addition, a high RSI indicator should entice a marked fall close to the short term USD 47.9 support. Moreover, prices are currently taking a double top pattern which could accentuate the coming drop.
The graphical configuration argues for opening a short position at the current price. The end of the technical rebound, the consolidation phase and an overbought situation: Cedar Fair has all the characteristics for short selling. The first objective will be fixed near the USD 47.9 short term support. This strategy should be protected by a stop loss above USD 52.6.
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Six Flags Entertainment Corporation is a regional amusement-resort operator with approximately 27 amusement parks, 15 water parks and nine resort properties across 17 states in the United States, Canada and Mexico. The Company provides memorable experiences to millions of guests every year with coasters, themed rides, thrilling water parks, resorts and a portfolio of intellectual property such as Looney Tunes, DC Comics and PEANUTS. The Companyâs parks include Hurricane Harbor Phoenix, California's Great America, Knott's Berry Farm, Knott's Soak City Waterpark, Six Flags Magic Mountain, Six Flags Discovery Kingdom, Six Flags Over Georgia, Six Flags White Water, Cedar Point Shores Waterpark, Six Flags Great America, Six Flags Fiesta Texas, Hurricane Harbor Splashtown, Dorney Park & Wildwater Kingdom and others.