Tesco PLC : An appropriate purchase level
June 26, 2013 at 04:16 am EDT
By
Entry price | Target | Stop-loss | Potential |
---|
GBX 329.95 |
GBX 0 |
GBX 314 |
-100% |
---|
The GBp 326 support, currently tested, should allow Tesco to rally again.
According to Surperformance rating, the company is an opportunity for a trading strategy. Indeed, it is a good compromise between its value and its visibility.
Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the GBp 326 area should stop this trend and allow a technical rebound towards Gbp 350. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.
Considering technical and fundamental elements, it seems to be an appropriate timing to immediately take a long position in Tesco in order to benefit from the GBp 326 support area. A first target price will be the GBp 350 resistance. A stop loss order will be placed under the mid-term support currently tested.
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