Tesco PLC : In oversold condition
February 02, 2012 at 09:10 pm IST
By
Entry price | Target | Stop-loss | Potential |
---|
GBX 319.6 |
GBX 0 |
GBX 308 |
-100% |
---|
The support area of £312.35 at the moment tested might facilitate a rally, at least technical. The fundamentals of the company could validate this scenario.
Technically, in daily data, if the moving averages are still trending downward, the positive reaction of £312.35 should stop this trend and allow to aim that scenario of a technical rebound towards the £356.25. In addition, the technical indicators show an oversold condition which reinforces this upward prevision.
According to surperformance rating, the company shows an interesting fundamental situation in a trading strategy. It has a good compromise between its value and visibility.
The technical pattern and strong Tesco PLC 's fundamentals is a good opportunity for active investors to buy above of £312.4. The potential drop is limited and the timing seems ideal to benefit of technical rebound. The first target price is £356.3, and then to aim at £356.3. However, we shouldn't continue this strategy under £312.4, in fact the downwards trend could restart.
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