Speedy Hire should undergo some profit-taking after the rebound in recent sessions.

The financial situation remains difficult with sharp revisions on EPS in the recent months. The P/E ratio shows also a high level of valuation at 42.5x for 2014.

From a technical viewpoint, the proximity of the GBp 70 medium-term resistance limits the upside potential on the stock. The uptrend in the short term could be stopped by this level and prices could decrease sharply in the coming sessions. Technical indicators also show an overbought situation that reinforces this bearish scenario. Thus, there is a higher downside potential than upside.

The graphical configuration argues to establish a short position at the current price. The end of the technical rebound, the consolidation phase and overbought situation offer an opportunity of short selling. The first objective will be fixed near the GBp 64.75 short term support and by extension the GBp 60.25 area. This strategy should be protected by a stop loss above GBp 70.