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Check out of Whitbread

After a great run, it is time to think about taking profits on any long positions in Whitbread and perhaps short-selling the stock, says Steven Mayne at www.egrbroking.co.uk.

The most recent highs in the price were not confirmed by highs in the relative strength index, which often foretells a change of trend. Consider shorting into a rally, targeting a return to the 200-day moving average (currently 1,654p) and placing a stop loss at 2020p.

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 Steven Mayne,
16 May 2012

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