The USD 16.5 support, currently tested, should allow Tesco Corporation to rally again.

From a fundamental viewpoint, the security is cheap with a P/E Ratio of 13.9x for 2014 and 10.5x for 2015. EPS revisions are in an upward momentum and confirm the positive consensus on the stock. Earning expectations are well oriented for the coming years and that let see a great potential for the stock on the market.

Technically, the security fell sharply for several weeks. This fall has lead Tesco towards the USD 16.5 support area, which could become useful as a stepping stone for a technical rebound. The target of this bullish rebound is the 20-day moving average at USD 18.9.

The trading strategy can benefit from the proximity of the strong support currently tested in order to buy Tesco Corporation (USA) in a good timing. The potential gain is 12%. Investors might place a stop loss order at USD 15.8 in order to avoid important losses.