Herbalife Ltd. : Perfect timing to aim a technical rebound
December 13, 2012 at 09:33 am EST
By
Entry price | Target | Stop-loss | Potential |
---|
$45.68 |
$0 |
$44.4 |
-100% |
---|
In the past few sessions, Herbalife shares have suffered from a sharp fall and is now coming back on significant level support.
From a fundamental viewpoint, the company has a value in line with the industry as its enterprise value ratios shows.
The security follows a downward trend in the short term, under the USD 48.7 resistance area.
The trend is bearish also in the mid-term, under USD 48.7. However, the selling pressure could run out of steam soon. Indeed, whereas the stock shows an oversold condition, the USD 45 support area currently tested might stop the bearish trend in the short term.
Investors could take a long position at USD 45.7 to target USD 48.7. The stop loss will be set at USD 44.4.
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