One of the lessons that traders have learned since the pandemic began is that you go short of stocks and indices at your peril these days. Even if there is a decline, as we are currently witnessing for leading indices, they do not tend to last. However, in the case of Solutions 30, we are a week into a steady decline for the European technology solutions group. Indeed, versus the original charting call around the €18 market, we have seen a relatively smooth decline to the initial €15.80 target at the floor of the rising wedge/50 day moving average. The risk now is that with short positions piling into the stock, while below the 50 day line we could see a follow on decline towards the 200 day moving average now at €12. It is anticipated that this could be delivered as soon as the end of next month.
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