Debenhams Plc : In an oversold condition
Entry price | Target | Stop-loss | Potential |
---|
GBX 62.55 |
GBX 0 |
GBX 59.8 |
-100% |
---|
Debenhams’ share price was heavily penalized and is now in an oversold situation near to a solid support area.
From a fundamental viewpoint, the company seems undervalued relatively to its peers with a EV/Sales of 0.41.
However, EPS have been revised downward, but this trend stopped few months ago and that should stop the bearish movement of the stock.
After several weeks of horizontal fluctuations within the mid-term range GBp 61.8 / GBp 68, the stock is coming back close to the lower limit of the range.
Moving averages are flat and technical indicators illustrate the oversold situation. The GBp 61.8 area could cause a positive reaction for the coming trading sessions and allow a technical rebound towards the GBp 68.05 short-term.
Current area is pertinent for opening a trade in order to aim GBp 68.05. The stop loss will be placed at GBp 59.8.
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