Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Medium term
Trade view / 29 October 2015 at 11:08 GMT

PRXL is set to fall on the bigger picture

CEO / Att Trading
Price target:
Market price:

Parexel International is a life sciences consulting firm. It is one of the largest clinical research organizations in the world with around 15,000 employees.

The stock made an uptrend over the last years, without breaking the SMA 200 significantly (figure 1, blue line) until a few weeks ago. 

Parexel formed it´s all-time high in August at $75.55. Since then, the stock developed a strong downtrend (figure 2, blue lines). At the moment the stock is in a correction.

PRXL Daily Chart (5-Years)
Source: ATT Trading

Management and risk description

Because of the actual strong downtrend we should look for a short trade. 

PRXL is at the beginning of establishing a bigger downtrend which gives us lucrative targets in short direction. Especially if the overall market shows signs of weakness. The stock has broken the SMA200 significantly, which might give us additional momentum. We could enter a short trade at the red arrow (figure 2) if we get a signal on the subordinate trend which might look like the black arrows on figure 2. 

Even if the first target is not that far away from our entry the second and third target are quite lucrative at $57, $53 and $42.

PRXL Daily Chart

Source: ATT Trading

If the stock rises over $64.20 our short idea would be over for the moment, because we would be in a small uptrend then. But the bigger down trend is still alright and we could enter a short trend later when the stock develops a new subordinate downtrend.


Entry: $60,00

Stop: $62,50

Target: $57,00, $53,00, $42,00

Time horizon: medium-term

— Edited by Clemens Bomsdorf

Non-independent investment research disclaimer applies. Read more


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