Celestica Inc. : Time to sell
By Josselin Giraud
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
CA$7.31 | CA$0 | CA$7.6 | +100% |
The rebound recorded in the last trading sessions is not justified by Celestica’s fundamentals which are still fragile.
Graphically, the security is trading in a bearish trend. In the short-term, the stock has rebounded on the CAD 6.6 support area toward its mid-term resistance. This rebound seems technical and is not likely to continue. Indeed, moving averages in the long-term are still in a downtrend and that argue for a continuation of the decrease in prices.
Therefore, fragile fundamentals and technical pattern let see a downside potential. Investors can take a short position close to the CAD 7.4 resistance area and aim a return in the CAD 6.6 support area. A stop loss will be fixed above CAD 7.4 because a breakout of this threshold would invalidate this trading strategy.