DCC plc : An opportune reversal
Entry price | Target | Stop-loss | Potential |
---|
GBX 3,324 |
GBX 0 |
GBX 3,265 |
-100% |
---|
DCC could regain its upward trend after a return near to a mid-term support and a bullish trendline.
According to Surperformance ratings, the group has strong fundamentals, both in terms of business predictability and valuation. Based on current prices, the company is valued at 0.24 times its sales for the current year. Moreover, revenues should progress in a 2016 horizon.
DCC is in an uptrend in the medium and long term, although, the last bearish movement has thrown it back near a major support level. This threshold, if preserved, will enable the equity to regain its long-term bullish movement. The buying point is situated near the GBp 3300 and the target at GBp 3475.
The decline observed in the short term offers an interesting entry point for a mid-term trading strategy. Thus, investors could take advantage of the current prices level to buy DCC. The target will be set at GBp 3473 and by extension GBp 3575. The stop loss will be triggered below the GBp 3300 support.
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