Rovi Laboratories opens alarming gap after presenting results
Ibex 35 begins a session after experiencing the previous day worst drop since March 2023. Now let’s see if it can recover part of this loss today or, conversely, continue to correct. It will be important to watch the 11,500 level and whether support remains at previous benchmark highs around 11,441, which should not be broken below.
Among the components of the Spanish index at the bottom, the negative results of the shares of Laboratorios Rovi, which presented its results for the first nine months of the year, disappointed investors. He net profit amounted to 113.5 million euros, down 4% than in the same previous period.
On the other side, Revenue for the period decreased by 5%amounting to 564.6 million euros, and gross operating profit (EBITDA) fell by 2% to 167.2 million. The company’s net debt increased by 182%reaching 108.8 million euros, due to an increase of 64 million in loans from credit institutions. The pharmaceutical company expects its operating profit to continue to decline in 2025 compared to 2024.
From a technical point of view, going back to FY 2023, a very bullish behavior is seen in Laboratorios Rovi shares, which followed a pattern of increasing lows and highs, causing the price to fall. overcome important technical linksas the three most representative moving averages.
In this sense, Laboratorios Rovi shares easily overcame every resistance that came their way, reaching an all-time intraday high in May of this year at €94.80. Subsequently, the start cost intensive corrective phaseshowing clear signs of weakness in both the short and medium term.
Evolution of Laboratorios Rovi shares
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If we focus on what has happened in recent days, we will notice that value has faced a challenge. difficulties in overcoming the 80 euro barrier per share, where the bears took control and caused several days in a row of intense correction. This trend ended with a significant drop in today’s session. more than 8%while we’re drawing these lines.
The value opened a significant downward gap, which jeopardizes your short-term schedulebeing clearly below the three moving averages with periods of 50, 100 and 200. This fact is an indicator that the bears are gaining momentum in this battle.
Despite this, there is key support area at 71.5 euros per share, which exactly matches the 38.20% Fibonacci proportional retracement of the last major bull leg. If the stock manages to recover and stay above this level for two sessions in a row, we could see partial closure of a bearish gap today, allowing you to place a buy order to take advantage of the rebound towards the €75 zone.
However, if the price fails to quickly recover to EUR 71.50, the chances of it finding the next support zone at EUR 65.05 will increase significantly, leading us to close positions if we have already purchased titles.