Leoni : The EUR 23.42 support area is tested
November 20, 2012 at 01:35 pm IST
By
Entry price | Target | Stop-loss | Potential |
---|
€24.68 |
€0 |
€22.6 |
-100% |
---|
According to Surperformance rating, the company is an opportunity for a trading strategy. Indeed, it is a good compromise between its value and its visibility.
The security follows a downward trend in the short term, under the EUR 26.36 resistance area. The trend is bearish also in the mid-term, under EUR 26.36. However, the selling pressure could run out of steam soon. Indeed, whereas the stock shows an oversold condition, the EUR 23.42 support area currently tested might stop the bearish trend in the short term.
Thanks to the technical pattern and LEONI's strong fundamentals, active investors can take a long position above EUR 23.4. The downside potential is limited and the timing seems perfect to benefit from a technical rebound.
The goals will be fixed at EUR 26.36 in a first time and then at EUR 29.1.
However, a bearish trend would regain the upper hand if the security crosses EUR 23.4.
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