Elementis plc : Good timing to aim a technical rebound
Entry price | Target | Stop-loss | Potential |
---|
GBX 261.87 |
GBX 0 |
GBX 256.8 |
-100% |
---|
From a fundamental viewpoint, the company has a value in line with the industry as its enterprise value ratios show.
Moreover, EPS estimates for the two coming years have been recently revised upward by analysts. This positive fact opens the way for a better evaluation of the security by investors. Consensus of analysts define a target price corresponding to 15% progression.
Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average, currently at GBp 281.3, shows. Nevertheless, the stock seems in an oversold situation, near to its GBp 260 support in daily data with a bullish trend-line next to it. This level might stop the bearish trend in the short term.
Considering technical and fundamental elements, it seems to be an appropriate timing to immediately open a long position in Elementis in order to benefit from the GBp 260 support area. A first target price will be the GBp 276.3 resistance, ie a potential of 6%. A stop loss order will be placed under the support currently tested.
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