Kingfisher plc : Trend line as support
Entry price | Target | Stop-loss | Potential |
---|
GBX 293.4 |
GBX 0 |
GBX 279.3 |
-100% |
---|
Take advantage of the support trend line area which could offer a potential rebound.
Regarding fundamentals, Kingfisher is in a good shape. Indeed, thanks to a sharp increase of the net earnings between 2013 and 2014, the EPS has raised about 25% from GBp 23.8 to GBp 29.7. In 2015, sales are also expected to grow by analysts.
Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average, currently at GBp 303, shows. Nevertheless, the stock seems being oversold, near to its GBp 290 support in daily data. This level represented by a strong trend line, tested several times might stop the short term slumping.
Therefore, it seems opportune to take a long position on Kingfisher at current prices. A confirmation of this pattern would enable the security to reach the GBp 323 pivot point. Investors should not insist below the GBp 289.2 and a stop-loss order should be placed under this threshold.
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