Standard Chartered PLC : Strong downward movement
Entry price | Target | Stop-loss | Potential |
---|
GBX 1,359.12 |
GBX 1,284 |
GBX 1,412 |
+5.53% |
---|
The trend is clearly bearish on Standard Chartered and the downward trend could lead prices toward GBp 1284, corresponding to a mid-term support.
The fundamental situation of the company remains fragile. Currently, the company is trading 2.68 times its sales, which is still a significant valuation for the company. Forecasts downgraded by analysts regarding earnings per share reflect the lack of visibility in the short term.
From a technical viewpoint, prices are in a downward trend. Moving averages are trending down and put pressure on the stock, which confirms this downward momentum. This trend may stop the technical recovery and drive again prices to the GBp 1284 support.
Taking into account fundamental and technical elements, investors can initiate a short position arround the resistance at GBp 1380 with a target price at GBp 1284. A return above GBp 1380, the short-term resistance area, will invalidate the bearish strategy, which justifies a stop loss.
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