DS Smith should undergo some profit-taking after the rebound in recent sessions.

Regarding fundamentals, analysts have recently revised downward their earnings per shares estimates. This situation is often an opportunity to expect a share fall.

From a technical viewpoint, the proximity of the GBp 286 medium-term resistance limits the upside potential on the stock. The uptrend in the short term could be stopped by this level and prices could decrease sharply in the coming sessions. Technical indicators also show an overbought situation that reinforces this bearish scenario. Thus, there is a higher downside potential than upside.

The upside seems limited as shown by fundamentals and technical configuration. In contact with the GBp 286 resistance, a movement of consolidation could send the stock towards the GBp 251 short-term pivot point. As a result, the most aggressive investors could take a short position near GBp 286.9 but they need to set a stop loss above this resistance because the crossing of this level would invalidate our scenario.