BG.

There has been a pretty steep uptrend in place for the gas production firm since the start of the year, with the shares adding around 35% from 630p to the current 858p level. However, Richard Cunningham, managing director at City Index Advisory, says: ‘Our technical readings are now indicating overbought readings and our fair value measure of 865p is some 8% below the current price.’

‘While the correlation with energy prices is not as strong as some may believe, there is nonetheless a tendency for a potential fall in raw energy prices in the near term to weigh on sentiment in this stock to some degree,’ he continues.

For brave investors, short selling the stock could be an exciting opportunity, with a stop loss above the 890p mark.

ACTION: SELL BG Group • Target 780p • Stop Loss 890p

TIME TARGET: 4 WEEKS