Amerisur Resources plc : Bearish momentum
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 34 | GBX 0 | GBX 37.1 | +100% |
From a fundamental viewpoint, the group is in a bad financial situation. Analysts have recently downgraded their forecasts regarding earnings per share. This indicator is often a precursor of a declining profitability and a worsening climate of investors' confidence.
From a technical viewpoint, prices are in a downward trend. Moving averages are trending down and put pressure on the stock, which confirms this downward momentum. This trend may continue toward the GBp 30 support.
Investors could take a short position in Amerisur Resources at current prices to target GBp 30. They will also place a stop loss above the GBp 35.5 resistance area, level that would invalidate our bearish strategy.