The USD 35 support, currently tested, should allow Lannett Company to rally again.

From a fundamental viewpoint, the security is cheap with a P/E Ratio of 8.67x for 2016 and 7.31x for 2017.
Moreover, recently, EPS estimates for the two coming years have been revised upward by analysts. This positive fact opens the way for a better evaluation of the security by investors.

Technically, the security fell sharply for several weeks. This fall has lead Lannett Company towards the USD 34/35 support area, which could become useful as a stepping stone for a technical rebound. The first target of this bullish trend is the USD 41.15 resistance. Even though moving averages are still in a bearish trend, the oversold situation could encourage a renewed interest in Lannett Company.

The trading strategy can benefit from the proximity of the strong support currently tested in order to buy Lannett Company with a good timing. The first target will be set at USD 41.15. Investors might place a stop loss order at USD 33.8 in order to avoid important losses.