Kohl's Corporation : The USD 43.13 support area is tested
December 12, 2012 at 07:58 pm IST
By
Entry price | Target | Stop-loss | Potential |
---|
US$43.5 |
US$0 |
US$42.5 |
-100% |
---|
The USD 43.1 support area, currently tested, might facilitate a technical rebound.
From a fundamental viewpoint, Kohl's Corporation is undervalued in terms of enterprise value. Based on the current price, its market capitalization, minus its net debt, represents 0.69 times its revenues.
This valuation is just 9.73 and 8.89 times the two next years earnings.
Technically, the security fell sharply for several weeks. This fall has lead Kohl's Corporation towards the USD 43.1 support area which could become useful as a stepping stone for a technical rebound. The target of this bullish trend is the USD 48.8 resistance. Even though moving averages are still in a bearish trend, the oversold situation could encourage a renewed interest in Kohl's Corporation.
So as to make the most of a potential technical rebound of Kohl's Corporation, it seems opportune to take a long position at the current price to target USD 48.8. Investors should not insist under USD 43.1.
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