Kimberly-Clark Corporation : Testing historical resistance
By Oscar Salza
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$73.89 | $0 | $74.9 | +100% |
In the 2011 full year report, the company showed guidance for 2012. The management forecast a light increase in net sales between 0 and 1 percent. Full year 2012 adjusted earnings per share is estimated between $5 and $5.15 dollar, more than Thomson Reuters’ consensus below $5. The company seems correctly valued with a price earnings ratio of 15x, according to Thomson Reuters.
Technically, the share is testing USD 74.15 long-term resistance. In daily data this level tested between December and January set up a technical pattern known as “double top”. This level represents also historical highest. With this scenario could be imagine a return towards USD 72.30 short-term support, for this reason we suggest to take a short position with a stop-loss above USD 74.50.