Shares digital

British Sky Broadcasting (BSY) 561p

Investors piled into the satellite broadcaster when it posted interim results last week (Wednesday 6 February), with the shares gaining more than 6% to 576p on the day. This was in spite of the company posting a £36 million half-year loss. The City focused on the broadcaster’s customer-retention figures as churn, the number of customers that dropped their subscriptions, came in lower than expected at 10%. Brokers were optimistic but, in the current climate, with inflation pushing up and consumer confidence under pressure, it may not be enough to focus on retention rates. The price rallied in the past four weeks from a low at 505p and Christian Blaabjerg, market strategist at Saxo Bank, identifies some strong bearish signs on the chart. He says: ‘The downtrend this stock is in has been rejected at the upper band of the channel and is on its way down to test the lower band.’ Go short, placing a stop loss at 590p.

ACTION: SELL BSkyB • Target 504p • Stop loss 590p

TIME TARGET: 4 WEEKS