After Today’s Gap Down, Is Talktalk Telecom Group PLC’s Near-Term Analysis Negative?

 After Today's Gap Down, Is Talktalk Telecom Group PLC's Near Term Analysis Negative?

The stock of Talktalk Telecom Group PLC (LON:TALK) gapped down by GBX 3.5 today and has GBX 146.89 target or 5.00% below today’s GBX 154.62 share price. The 9 months technical chart setup indicates high risk for the GBX 1.48B company. The gap down was reported on Nov, 24 by Barchart.com. If the GBX 146.89 price target is reached, the company will be worth GBX 74.00 million less.
Gaps down are helpful for identifying a resistance level and to could also be used as a tradeable event. If traders are short the stock and it experiece gap down, then its usually advisable to hold the short for a bigger down move. Back-tests of such patterns show that two-thirds of the these patterns the stock performance worsens after the gap. The area gaps close 91% of the time, the breakaway gaps 1%, the continuation gaps 9% and the exhaustion gaps 64%. The stock decreased 1.34% or GBX 2.09 on November 24, hitting GBX 154.62. About 3.38 million shares traded hands or 52.25% up from the average. Talktalk Telecom Group PLC (LON:TALK) has declined 41.80% since April 28, 2016 and is downtrending. It has underperformed by 47.21% the S&P500.

Talktalk Telecom Group PLC (LON:TALK) Ratings Coverage

Out of 20 analysts covering TalkTalk Telecom Group PLC (LON:TALK), 6 rate it a “Buy”, 5 “Sell”, while 9 “Hold”. This means 30% are positive. TalkTalk Telecom Group PLC has been the topic of 97 analyst reports since July 23, 2015 according to StockzIntelligence Inc. The stock has “Sell” rating given by Haitong Securities on Monday, April 18. The company was upgraded on Thursday, September 10 by Macquarie Research. The firm has “Outperform” rating by Credit Suisse given on Tuesday, August 18. The stock has “Reduce” rating given by Nomura on Friday, October 16. Jefferies maintained Talktalk Telecom Group PLC (LON:TALK) on Wednesday, February 10 with “Underperform” rating. Berenberg downgraded the shares of TALK in a report on Monday, November 30 to “Sell” rating. Deutsche Bank maintained Talktalk Telecom Group PLC (LON:TALK) rating on Tuesday, September 6. Deutsche Bank has “Buy” rating and GBX 300 price target. Deutsche Bank maintained Talktalk Telecom Group PLC (LON:TALK) rating on Monday, November 14. Deutsche Bank has “Buy” rating and GBX 300 price target. The stock of Talktalk Telecom Group PLC (LON:TALK) earned “Sell” rating by Societe Generale on Friday, November 27. As per Friday, October 30, the company rating was maintained by Morgan Stanley.

TalkTalk Telecom Group PLC is a provider of fixed line broadband, voice telephony, mobile and television services. The company has a market cap of 1.48 billion GBP. The Firm serves over four million residential and business clients under the TalkTalk and TalkTalk Business brands. It has a 49.54 P/E ratio. TalkTalk residential packages offer broadband, phone, television and mobile services.

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