what is next for S4 capital investors?

• S4 capital stock has been highly bearish this entire year giving a negative 50% return to date.
• The stock breached its last support at 106.7£ and currently trades at its all-time low.
• A reversal candle-like formation is seen in the stock and investors pray it turns out true as well.

S4 Capital is a digital advertising and marketing services company. The company strategy is to build a purely digital advertising and marketing services business, initially by integrating leading businesses in three practice areas: first-party data, digital content, digital media planning, and buying, along with an emphasis on ‘faster, better, cheaper’ executions in an always-on consumer-led environment, and with a unitary structure.

Even though the company’s stock has been struggling, its financials are yet highly strong with an excellent growth record. This data is an excellent factor that is considered for a long-term entry in the stock.

Technical analysis for the S4 capital stock

The stock has been bearish since the beginning of this year. It saw a sharp recovery in mid-June when it touched its resistance at 158.6£ but faced an immediate selling from there. 

It broke its last support at 106.7£ a few days back and currently trades at an all-time low price of around 92£. The stock formed a small bullish hammer which can be an indication of a possible recovery. If this happens and the stock comfortably crosses 106£, we can expect some bullish momentum from there. 128£ can be a good long-term target in this case.

If the stock yet moves downwards, we have no target and a freefall can be expected.
A one-hour chart shows the stock moving up from its daily low at 90.6£. This was followed by a few good days before another big bearish hammer emerged. The current setup looks weak and if the stock breaches the low at 90£, we can expect a further big downside.

97£ still acts as the first resistance and buy target in case of an upside. Analysts are highly bullish on the stock with a target price of 214£ in the next year which is more than a 130% return to its investors from the current levels. Only if the stock crosses 106£ levels, one should look for a buy entry since the zone below that yet remains highly risky. 

Conclusion

The stock currently trades at an all-time low. There are yet a few chances for the stock to go down but data shows a possible upside in the upcoming few months. 

One must wait for the stock to reach back healthy levels before making a move as the stock is highly volatile as of now.

Important technical levels

• Major support levels- 90£.
• Major resistance levels- 97£ followed by 106£.