We are on the hunt for short ideas as we expect to see some form of pullback in equities in the short term. Sage Group is in a long term downtrend and has underperformed the benchmark index over the past 1-3 months on a relative basis. The shares have rallied into downtrend resistance as well as a combination of the 50 & 200 day moving average. There was also a bearish engulfing candle on Tuesday. We therefore expect to see this fall in the short term. Stop loss at 667p, targeting a move to retest the recent lows around 620p
Trade closed: stop reached:
Break out!