Sky : A steady bullish trend
December 20, 2012 at 01:30 pm IST
By
Entry price | Target | Stop-loss | Potential |
---|
GBX 772 |
GBX 850 |
GBX 766 |
+10.1% |
---|
British Sky Broadcasting Group could exceed the symbolic threshold of GBp 779.
From a fundamental viewpoint, despite a high valuation, analysts polled by Thomson Reuters have regularly revised upward the earning per share estimates. Consequently, profitability is improving, showing a relatively good financial health of the company.
Since several months, the stock has initiated a sharp bullish trend mainly due to strong fundamentals. The move could be continued, supported by the 20-day moving average, and return to its highest price levels.
Therefore, investors will benefit from the signal given by the crossing of the GBp 779 resistance to take a long position in the stock. The objective will be set near GBp 850. Once the position is opened, a stop loss should be fixed under effective entry point to guard against a trend reversal.
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