Centamin plc : Oversold condition
Entry price | Target | Stop-loss | Potential |
---|
GBX 51.65 |
GBX 0 |
GBX 48.4 |
-100% |
---|
In the past few sessions Centamin's share sharply fell but the stock is presently coming back to a significant support level.
From a fundamental viewpoint, company should make a better turnover in 2014 according to analysts, as the 3 previous years. Indeed in 2014, sales should increase by 4% compared to 2013. Moreover, in 2014, company is expected to pay a dividend which could provide a 2% yield.
Technically, the security sharply fell for several weeks. This fall lead shares on Centamin toward the GBp 49.6 support area, which could become a stepping stone for a bounce in prices. This push could draw an upturn movement, thus launching the equity toward the GBp 55.85 resistance level. Even though, daily moving averages are still in a bearish trend, the oversold situation could encourage a renewed interest in Centamin.
Therefore, the proximity of the GBp 49.6 support is an opportunity to take a long position in Centamin. The first target is a return in the GBp 55.85 resistance area. A stop loss order can be placed under the support currently tested.
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