Background
Manpower belongs to the top three employment agencies with approximately 35,000 employees, 3,100 branches worldwide and revenues of $20.3 billion in 2014.
In Figure 1 we can see that the stock price has risen since 2011 from about $32.00 up to about $97.50. Currently the stock is in a correction after it reached it´s all-time high. For the medium-term trader a local downtrend on the daily chart has formed and is currently in a correction.
Management and risk description
On the daily chart we can see this downtrend, which is drawn in blue. The down movements have much more volume which is a good indication for a short trade. Currently the stock made a 90% correction and we could get an entry very soon.
For a medium-term short trade we could wait for a subordinate downtrend to get an entry into this trade. With increasing selling pressure this trade our targets are $77.50 and $63.00.
Above the price level of $91.00 our short idea would be over and we would have to wait until the stock made a new trend.
Parameters
Entry: $83.00
Stop: $87.50
Target: $77.50, $63.00
Time horizon: medium-term
