Blue Nile Inc : Reversal movement is forming
Entry price | Target | Stop-loss | Potential |
---|
US$42.16 |
US$0 |
US$40.8 |
-100% |
---|
Return on a pertinent daily support (USD 41.5).
The fundamentals data support the stock. The growth potential is particularly appreciated and the recovery of the net margin for one year. The group is still undervalued and the “enterprise value to sales” ratio shows an attractive valuation of 0.96x for the current year.
Blue Nile is in an uptrend in the medium and long term, but the last bearish movement returns close to a major support. This threshold, if preserved, will enable to benefit from the bullish movement.
The decline observed in the short term offers an interesting entry point for a mid-term investment. Investors will take advantage of the current prices to buy Blue Nile. The objectives will be set at USD 44.4 and by extension USD 48. The stop loss will be triggered below the USD 41.5 support.
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