|Index and derivatives Analyst
Strategy published on : 01/10/2018 | 08:52
short sellStop-loss triggered
Entry price : 74.48€
Target : 71.45€
Stop-loss : 75.6€
Potential : 4.07%
The increase that has been seen over the past weeks in the share price of Schneider Electric SE has brought back the stock to major resistance levels on the weekly chart. Reaching this zone could lead to profit-taking and give rise to a correction.
Investors should open a short trade and target the € 71.45.
● In a short-term perspective, the company has interesting fundamentals.
● The company returns high margins, thereby supporting business profitability.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● This company will be of major interest to investors in search of a high dividend stock.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The stock is in a well-established, long-term rising trend above the technical support level at 69.35 EUR
● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● The stock is close to a major daily resistance at EUR 75.45, which should be gotten rid of so as to gain new appreciation potential.
● According to Thomson-Reuters' forecast, revenue growth prospects are expected to be very low for the next fiscal years.