Beam Suntory Inc : The area of USD 53.15 might facilitate a technical rebound
November 29, 2012 at 07:37 pm IST
By
Entry price | Target | Stop-loss | Potential |
---|
US$54.16 |
US$0 |
US$52.9 |
-100% |
---|
BEAM share price was heavily penalized and is now in an oversold situation near to a solid support area.
From a fundamental viewpoint, the company has a value in line with the industry as its enterprise value ratios shows.
Nonetheless, recently, EPS estimates for the two coming years have been revised upward by analysts. This positive fact opens the way for a better evaluation of the security by investors.
Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average, currently at USD 55, shows. Nevertheless, the stock seems in an oversold situation, near to its USD 53.15 support in daily data. This level might stop the bearish trend in the short term.
For a trading strategy, investors could take a long position to target USD 57.45. A stop loss will be fixed at USD 52.9.
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