Standard Chartered PLC : Bearish acceleration
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 1,270.5 | GBX 1,200 | GBX 1,305 | +5.55% |
Regarding company’s fundamentals, we can note major weaknesses. The main point is the downward revision on EPS for 2013 and 2014, respectively at +20% and +15% over the last year.
Technical analysis gives a bearish signal in the short (breakout of the GBp 1283.5 support). The bearish orientation of moving averages confirms this hypothesis. We anticipate a continuation of the correction toward the GBp 1200, corresponding to a swing effect of the current trading range. The breakdown of this level would be a strong sell signal and open up new bearish targets.
A short position may be initiated on the stock once the GBp 1283.5 support is broken. The target price is set at GBp 1200, a potential of 7%. A stop order will be placed above the GBp 1300.