Devro’s share price was heavily penalized and is now in an oversold situation near to a solid support area. The company is specialized in manufacturing sausage casings and also produces films or specialized collagen products.

Technicaly, the stock is coming back close to an important support in weekly and daily data. Technical indicators illustrate the oversold situation and these thresholds could help to form a technical rebound. The GBp 289.9 area could cause a positive reaction for the coming trading sessions and allow a technical rebound towards the GBp 309 mid-term resistance and then the long-term target price is GBp 323.6.

The trading strategy can benefit from the proximity of the strong support currently tested in order to buy Devro in a good timing. The potential gain is 5.6 %. Investors might placed a stop loss order at GBp 283.6 in order to avoid important losses.