SGE published worse than expected numbers which triggered a 13% sell-off. It is likely the end of a corrective Wave 2. Time to start buying at this 580-ish levels to get on coming Wave 3 train.
Following a brutal sell off recently rolling a CEO step down, now could be the time for a long entry on SGE.
Looking at an entry above Fridays high.
Technical points:
Engulfing bar on strong volume
Rejection from lower Fib
RSI 2 oversold
May be good for a bounce.
SL: 560
TP1: 608
TP2: 630
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...
expecting a correction of this sharp rally down to the 50% fib at least
Confluences: low volume resistance turned support level price finally broke through could act as magnet
current channel rejection off resistance
doji/hammer rejection on daily into a heavy daily sell off indicative of bears entering the market
Target 650
The Sage Group Plc engages in the provision of business management solutions. It offers accounting, enterprise resource planning and payroll software. It operates through the following business segments: Northern Europe, Central and Southern Europe, North America, and North America. The company was founded by David Goldman, Paul Muller, and Graham Wylie in 1981 and is headquartered in Newcastle-upon-Tyne, the United Kingdom.
LSE
