Devro plc : The GBp 300 support area is tested
Entry price | Target | Stop-loss | Potential |
---|
GBX 305.16 |
GBX 0 |
GBX 289.2 |
-100% |
---|
Devro shows relatively strong fundamentals and is coming back to attractive prices.
From a fundamental viewpoint, the company has a value in line with the industry as its enterprise value ratios show. Moreover, the group has a low debt level, as shown by the financial leverage of 0.53x for 2013.
Devro is oversold and near to GBp 300. This situation gives credit to a potential technical rebound. Thus, the stock could find new energy and would rise towards the next GBp 319.3 resistance.
So as to make the most of a potential technical rebound of Devro, it seems opportune to take a long position at the current price. A confirmation of this pattern would enable the security to reach the GBp 319 resistance. Investors should not insist under GBp 300 and are better off placing a stop loss order under this threshold.
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