Wm Morrison Supermarkets : Back on its bullish trend
January 15, 2013 at 04:39 am EST
By
Entry price | Target | Stop-loss | Potential |
---|
GBX 252 |
GBX 0 |
GBX 244.3 |
-100% |
---|
Morrison Supermarkets shows relatively strong fundamentals and is coming back to attractive price.
From a fundamental viewpoint, the company seems undervalued relatively to its peers with a EV/Sales of 0.46. However, analysts have revised slightly downward their earnings forecasts.
Technically, the security fell sharply for several weeks. This fall has lead Morrison Supermarkets towards the GBp 251.9 support area which could become useful as a stepping stone for a technical rebound. The first target of this bullish trend is the GBp 261.2 resistance. Even though moving averages are still in a bearish trend, the oversold situation could encourage a renewed interest in Morrison Supermarkets.
The trading strategy can benefit from the proximity of the strong support currently tested in order to buy Morrison Supermarkets in a good timing. Investors might placed a stop loss order at GBp 244.3 in order to avoid important losses.
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