GSK plc : Bearish signal below GBp 1415
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 1,421.95 | GBX 1,350 | GBX 1,455 | +5.06% |
From a fundamental viewpoint, the group is in a bad financial situation. For one year, analysts have downgraded their forecasts for earnings per share. This indicator is often a precursor of a declining profitability and a worsening climate of investors' confidence.
Technically, the share is in a downward trend. The moving averages are decreasing and are still above prices, thereby stopping any rebounds. The security is going toward the GBp 1414.5 support, a level that will represent an entry point when broke-down.
Taking into account fundamental and technical elements, investors can initiate a short position below GBp 1414.5 with the GBp 1350 as a target. A return towards GBp 1450, will invalidate the bearish strategy, which justifies a stop loss.