There is a potential short sale set up on the daily chart for shares of Dentsply Intl Inc (XRAY).
The company designs, develops, manufactures and markets a full range of professional dental products, including dental implants, endodontic instruments and materials, orthodontic appliances.
Dentsply just completed its acquisition of Astra Tech AB from AstraZeneca (AZN). Share prices have not responded positively, but our bearish view is based on the daily chart.
XRAY has a very well defined double top in place after reaching its highest level since 2007. If shares close below the prior correction lows at about $40.75, we would be looking for continued selling over coming weeks.
A short sale at a close below $40.75 would be a fairly low risk trade with a buy stop near $43.00. Downside target at about $36.00 a share.
Disclosure: Author does not have a position in Dentsply Intl.