Strategy published on : 12/06/2018 | 08:46
short sellTarget price hit
Entry price : 18.425€
Target : 17.8€
Stop-loss : 19.2€
Potential : 3.39%
The share price of Veolia Environnement is touching a resistance on the weekly chart at around 19.09 EUR. After the price rise that was seen over the past weeks, the stock's upside potential now appears limited while there is some risque that a correction may occur.
Investors should open a short trade and target the € 17.8.
● The company has solid fundamentals for a short-term investment strategy.
● As regards fundamentals, the enterprise value to sales ratio is at 0.78 for the current period. Therefore, the company is undervalued.
● The company is one of the best yield companies with high dividend expectations.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● 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.
● According to forecast, a sluggish sales growth is expected for the next fiscal years.
● The group shows a rather high level of debt in proportion to its EBITDA.
● Below the resistance at 19.09 EUR, the stock shows a negative configuration when looking looking at the weekly chart.