Workspace Group Plc : Still bearish momentum
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 691 | GBX 0 | GBX 710.2 | +100% |
The company is fragile. Financially, the group is in a difficult situation with a high leverage estimated at 4.55 for the current year. Forecasts downgraded by analysts regarding earnings per share reflect the lack of visibility in the short term.
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 577 support.
Investors could take a short position in Workspace Group near the GBp 689 to target the GBp 577 area. They will also place a stop-loss above the GBp 689.5 resistance area, level that would invalidate our bearish strategy.