CGG

CGG
Real-time Euronext Paris - 01/24 05:35:25 pm
2.75EUR
-0.9%

CGG : Close to major technical levels

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Laurent Polsinelli
Index and derivatives Analyst

Strategy published on : 01/14/2020 | 09:18

short sell
Live

Entry price : 2.893€
Target : 2.59€
Stop-loss : 3.13€
Potential : 10.47%

The resistance zone around 2.98 EUR on the weekly chart shuold rein in spikes to the upside. The timing to get ahead of the start of a correction in shares of CGG seems very opportune.
Investors should open a short trade and target the € 2.59.

Summary

● For a short-term investment strategy, the company has poor fundamentals.


Strengths

● Over the last seven days, analysts have been revising upwards their EPS estimates for the company.

● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.

● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 1.99 EUR


Weaknesses

● Stock prices approach a strong long-term resistance in weekly data at EUR 2.98.

● Technically, the stock approaches a strong medium-term resistance at EUR 3.03.

● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.

● The company sustains low margins.

● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.

● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.

● For the last four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.

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