In the past few sessions, Delhaize Group shares have suffered from a sharp fall and is now coming back on significant support level.

From a fundamental viewpoint, the company seems undervalued relatively to its peers with a EV/Sales of 0.23.
In the recent months, the earnings estimates for the next year are regularly revised upward by analysts. With an EPS estimated at 3.05 EUR for this year and 4.17 EUR for the next year, Delhaize Group is currently paid 8.73 and 6.38 times the results.

After several weeks of horizontal fluctuations within the mid-term range EUR 25.6/33.8, the stock is coming back close to the lower limit of the range.
Moving averages are flat and technical indicators illustrate the oversold situation. The EUR 25.6 area could cause a positive reaction for the coming trading sessions and allow a technical rebound towards the EUR 28.5 mid-term resistance and then the long-term target price is EUR 33.8.

So as to make the most of a potential technical rebound of Delhaize Group, it seems opportune to take a long position at the current price. A confirmation of this pattern would enable the security to reach the EUR 30 resistance. Investors should not insist under EUR 25.6.