RWE

RWE
Real-time TRADEGATE AG - 05/20 07:32:29 am
23.385EUR
-0.34%

Limited upside due to a resistance on the weekly chart

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Ulrich Ebensperger
Financial Analyst

Strategy published on : 03/13/2019 | 03:27

short sell
Stop-loss triggered

Entry price : 22.09€
Target : 20.5€
Stop-loss : 23€
Potential : 7.2%

Below the resistance levels that are currently being tested and which are situated around 22.48 EUR, the beginning of a correction phase for shares in RWE appears to be the most likely scenario.
Investors should open a short trade and target the € 20.5.

Strengths

● As regards fundamentals, the enterprise value to sales ratio is at 0.74 for the current period. Therefore, the company is undervalued.

● The company is one of the best yield companies with high dividend expectations.

● Analysts covering this company mostly recommend stock overweighting or purchase.


Weaknesses

● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.

● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.

● As estimated by analysts, this group is among those businesses with the lowest growth prospects.

● The group shows a rather high level of debt in proportion to its EBITDA.

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

● For the past seven days, analysts have been lowering their EPS expectations for the company.

● For the last few months, analysts have been revising downwards their earnings forecast.

Zonebourse.com 2019
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