Mead Johnson Nutrition CO : The area of USD 70.7 might facilitate a technical rebound
Entry price | Target | Stop-loss | Potential |
---|
$72.02 |
$0 |
$66 |
-100% |
---|
In the past few sessions, Mead Johnson Nutrition, major manufacturer of infant formula have suffered from a sharp fall and is now coming back on significant level support.
From a fundamental viewpoint, the company has a value in line with the industry as its enterprise value ratios show. Nonetheless, recently, EPS estimates for the two coming years have been revised upward by analysts. This positive fact opens the way for a better valuation of the security by investors.
Technically, the security fell sharply for several weeks. This fall has lead Mead Johnson Nutrition towards the USD 70.7 support area which could become useful as a stepping stone for a technical rebound. The target of this bullish trend is the USD 78.15 resistance. Even though moving averages are still in a bearish trend, the oversold situation could encourage a renewed interest in Mead Johnson Nutrition.
The trading strategy can benefit from the proximity of the strong support currently tested in order to buy Mead Johnson Nutrition in a good timing. The potential gain is 8.5 %. Investors might placed a stop loss order at USD 66 in order to avoid important losses.
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