Aetna : The USD 37.55 support area is tested
Entry price | Target | Stop-loss | Potential |
---|
$38.03 |
$0 |
$37 |
-100% |
---|
Aetna, American managed health care company, have suffered from a sharp fall and is now coming back on significant level support.
From a fundamental viewpoint, the security is cheap with a PER of 7.45x for 2012 and 6.84x for 2013. It is cheaper than industry average. Besides, EV/Sales is low with a ratio at 0.46x for this year.
Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average, currently at USD 39.4, shows. Nevertheless, the stock seems in an oversold situation, near to its USD 37.55 support in daily data. This level might stop the bearish trend in the short term.
Therefore, the proximity of the USD 37.55 support is an opportunity to take a long position in Aetna. The first goal is a return in the USD 40.5 resistance area, that is a potential gain of 6.5 %. A stop loss order can be placed under the support currently tested.
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