No technical support in sight for Capita until 400p, technical analyst says
By Alexander Bueso
Date: Thursday 08 Dec 2016
(ShareCast News) - Technical analysts at Digital Look described Capita´s technical backdrop as dire after the company cut its guidance one again, sending shares crashing lower.
"Taking away the odd bounce in the shares here and there the share price trend in Capita is very bearish. Towards the end of September it left behind a large 'bearish gap' at 952.9p which is now its main area resistance and lies far away," Digital Look technical analyst Jose Maria Rodriguez said.
It´s not at all easy to analyse a stock which is this bearish, especially after having lost a key level of technical support at 600p, which has now turned into resistance, he added.
The outlook was little improved even if one stepped back and looked at the share price trend since the lows reached in 2002, given that the 61.8% Fibonacci retracement level had also given way.
There was no clear technical support in view until 400p, Rodriguez concluded.
"When a stock drops this sharply, anything is possible."
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