Tesco PLC : Anticipation of a bearish reversal
Entry price | Target | Stop-loss | Potential |
---|
GBX 243.6 |
GBX 0 |
GBX 259 |
+100% |
---|
After a technical rebound, the stock is showing signs of weakness near to bearish technical thresholds.
Analysts have severely downgraded their EPS estimates. Moreover, the stock is trading 6% higher than the average target price set by analysts.
From a technical viewpoint, the proximity of the GBp 243/252 resistance area limits the upside potential on the stock. The contact with the downward trendline is also stopping the bullish fluctuations. The uptrend in the short term could be stopped by those thresholds and prices could decrease sharply in the coming sessions.
Therefore, the proximity of those resistance thresholds suggests a consolidation phase in the coming sessions. The most offensive will open a short position on the stock and target a return on the GBp 209.3 support. A stop loss will protect the position above GBp 252.
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