Carclo reaches a short term resistance. This level could contain the upward trend in the next sessions.

From a fundamental viewpoint, firstly, we note the high valuation of the company. P/E ratio for the current year is at 62.2x and expected at 41.1x for next year. With a valuation ratio of 2.83x, the group appears overvalued compared to its business activity.

From a technical viewpoint, the GBp 421 short-term resistance limits the upside potential on the stock. The uptrend in the short term has been 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.

Due to the technical configuration and a bad fundamental situation that does not justify the current valuation of the group, investors can open a short position at the current price. The price target is set at GBp 375 and a stop loss will be placed at GBp 434.