Devro plc : An interesting configuration
By Pierre Gilles de la Londe
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 277.34 | GBX 248.8 | GBX 291.1 | +10.29% |
From a fundamental viewpoint, the company is expected to publish an EPS lower by 80% than the previous year. Moreover, analysts have revised downward their EPS expectations during the last 12 months. This situation could lead to some profit taking in the short run.
From a technical viewpoint, the stock is now in contact with its support at GBp 277. In case of a breakdown of this level, a sharp decrease could happen toward the GBp 248.8 pivot point. Once the position opened a stop loss should be set above the GBp 277 area.
To conclude, a short position can be open in case of breakdown of the GBp 277 support. If this configuration happen a stop loss should be place on the GBp 290 area.