Wm Morrison Supermarkets : Perfect timing to aim a technical rebound
Entry price | Target | Stop-loss | Potential |
---|
GBX 257.5 |
GBX 0 |
GBX 252.4 |
-100% |
---|
Morrison Supermarkets shows relatively strong fundamentals and is coming back to attractive price.
From a fundamental viewpoint, the security is cheap with a PER of 9.5x for 2013 and 8.9x for 2014. Besides, EV/Sales is low with a ratio at 0.47x for this year.
Currently the stock is oversold and, in the mid-term, it is trading in a bearish trend. In the short term, this trend is reversed upon contact with the GBp 256.2 area. Morrison Supermarkets should be able to confirm its increase in the next trading sessions.
This support is a trading opportunity in order to anticipate a technical rebound towards GBp 271.4 and by extension towards GBp 278.2. Yet, a stop loss order will be placed below GBp 256 in case of downturn.
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