Wm Morrison Supermarkets : The GBp 260.8 support area is tested
June 06, 2013 at 03:58 am EDT
By
Entry price | Target | Stop-loss | Potential |
---|
GBX 264.9 |
GBX 0 |
GBX 252.14 |
-100% |
---|
The GBp 260.8 support area, currently tested, might facilitate a technical rebound.
From a fundamental viewpoint, Wm. Morrison Supermarkets is undervalued in terms of enterprise value. Based on the current price, its market capitalization, plus its net debt, represents 0.48 times its revenues. The price earning ratio is just 10.37 and 10 times the two next years.
Wm. Morrison Supermarkets share price is now in oversold situation, giving arguments to a potential rebound. Thus, the stock could find new impetus and could rise towards the next GBp 279.30 resistance.
Considering technical and fundamental elements, it seems to be an appropriate timing to immediately take a long position in Wm. Morrison Supermarkets in order to benefit from the GBp 260.8 support area. A first target price will be the GBp 279.3 resistance. A stop loss order will be placed under the mid-term support currently tested to avoid another correction.
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