QinetiQ Group plc : The GBp 182.5 support area being tested
By Anas Boumedian
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 189.7 | GBX 0 | GBX 176.25 | -100% |
QinetiQ Group shows sound financials, with an attractive valuation and an increasing profitability. Moreover, analysts covering the stock are optimistic and target a 17% potential return on average.
Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average shows. Nevertheless, the stock seems being oversold, near to its GBp 182.5 support in daily data. This level seems to stop the short term slumping, allowing a technical rebound over the GBp 189 pivot point.
Active investors can open a long position on the stock. The downside potential is limited and the timing seems perfect to benefit from a technical rebound. The goals will be fixed at GBp 195 then GBp 208. However, a bearish trend would regain the upper hand if the security crosses GBp 182.5.