ADT shares are likely to enter a correction phase and depreciate on the upcoming trading sessions.

The company seems to not benefit from analysts optimism, those last one have recently revised down EPS estimates. Moreover, the stock was recently downgraded by Morgan Stanley to underweight, with a 12-month price target of USD 34.

Technically, the bullish trend on the short term seems to have run out of steam upon contact with the USD 36.3 resistance. This threshold, tested previously, is likely to stimulate a consolidation phase and push down prices toward the USD 33.27 support.

Thus, most offensive traders should open a short position on the security to target a return on the USD 33.3 level. However, it will be wise to place a stop loss order over the current resistance.