Debenhams Plc : A rally could take place
Entry price | Target | Stop-loss | Potential |
---|
GBX 54.53 |
GBX 0 |
GBX 51.9 |
-100% |
---|
In the past few sessions, Debenhams shares have suffered from a sharp fall and is now coming back to significant level support.
According to Surperformance© ratings, the company constitutes an opportunity for a trading strategy. Indeed, it usually posts better-than-expected financial statements as in 2014 and the enterprise valuation conciliates with its visibility.
Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the GBp 53.25 area should stop this trend and allow a technical rebound towards GBp 60.95. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.
So as to make the most of a potential technical rebound of Debenhams, it seems opportune to open a long trade at current prices. A confirmation of this pattern would enable the security to reach the GBp 66.7 resistance after a first target at GBp 60.95. Investors should not insist under GBp 53.25 and are better of placing a stop loss order under this threshold.
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