Drax Group plc : A rally could be expected
Entry price | Target | Stop-loss | Potential |
---|
GBX 451.3 |
GBX 0 |
GBX 398 |
-100% |
---|
Drax group stock fell sharply and seems on an interesting entry level currently.
The British electrical power generation company displays solid fundamentals with a strong profitability and an attractive valuation. Thomson Reuters forecats underlines the company growth potential. Furthermore, analysts covering the stock expects a 40% gain potential on average, by targetting GBp 633.
Technically, the stock was severly punished lately. The bearish movement due to the oversold flow sent prices back on the GBp 441 support. This situation gives credit to a potential technical rebound. Thus, the stock could find new energy and would rise towards higher threshold.
Considering technical and fundamental elements, it seems to be an appropriate timing to take immediately a long position in Drax Group to benefit from the potential rebound. The first target price will be the GBp 520 resistance and a stop loss order will be placed under the mid-term support currently tested.
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