MVV Energie AG : Good timing to aim a technical rebound
April 15, 2013 at 01:47 pm IST
By
Entry price | Target | Stop-loss | Potential |
---|
€23.34 |
€0 |
€20.9 |
-100% |
---|
MVV Energie shows relatively strong fundamentals and is coming back to attractive price.
From a fundamental viewpoint, the company seems undervalued relatively to its peers with a EV/Sales of 0.69x. However, analysts have revised downward their earnings forecasts. With an EPS estimated at EUR 1.25, MVV Energie is currently paid 18.3 times the results.
Currently the stock is oversold and, in the mid-term, it is trading in a bearish trend. In the short term, this trend is reversed upon contact with the EUR 22.2 area. MVV Energie should be able to confirm its increase in the next trading sessions. This support is a trading opportunity in order to anticipate a technical rebound towards EUR 24.9.
Thus, it seems opportune to take a long position at the current price. The objective will be the EUR 24.9 short term resistance then EUR 28. A stop loss must be placed below the EUR 22.2 short term support.
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