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Experian is maxed out

After a blistering ascent that has taken its price up more than 50 per cent in nine months, Experian may have peaked, says Ragu Dharmaratnam of Baselica.

If the price closes below its 55-day moving average – currently 970p – traders should consider going short, placing a stop loss at 1040p. A drop to 850p could be on the cards. A bearish momentum reading for the first time since October supports this negative view.

City Trades are written by selected external contributors and are based on the interpretation of patterns on a share price chart, rather than on fundamental analysis of the company's business or prospects.

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By Ragu Dharmaratnam,
09 May 2012

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