WH Smith PLC : The mid-term trend could accelerate in few sessions
February 28, 2013 at 04:06 am EST
By
Entry price | Target | Stop-loss | Potential |
---|
GBX 667 |
GBX 0 |
GBX 644.5 |
-100% |
---|
WH Smith could regain its upward trend after having run out of steam.
The group enjoys upward revisions in earnings per share and growth prospects.
Following a bullish wave, the stock now shows a slight decline that led it near to its GBp 663.5 medium-term support, area corresponding to the 50-day and 20-week moving averages. On this level, remobilization of buyer flows would allow an uptrend in the medium and long term. So, the security could come back to its GBp 712 long-term resistance.
In this configuration, investors could take a buy order on this level and get a good entry point. The first objective will be set at the GBp 712 long-term resistance. Once this level crossed, the security could go up towards new highs. A stop loss must be placed below the GBp 663.5 support.
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