Mondi plc : A pertinent purchase level
Entry price | Target | Stop-loss | Potential |
---|
GBX 924.5 |
GBX 0 |
GBX 892 |
-100% |
---|
The GBp 904.5 support area, currently tested, might facilitate a technical rebound. The company’s fundamentals could validate this scenario.
According to Surperformance ratings, the company is an opportunity for a trading strategy. Indeed, it is a good compromise between its value and its visibility. Moreover, the valuation is relatively low with a P/E ratio at 11.4 for 2014.
The security follows a downward trend in the short term, under the GBp 980.5 resistance area. In the mid-term, the trend is neutral. The stock is trading within a range between GBp 904.5 and GBp 1043. Mondi is not likely to continue its downtrend because it is near to the strong GBp 904.5 and it is oversold.
Thanks to the technical pattern and Mondi’s strong fundamentals, active investors can take a long position above GBp 904.5. The downside potential is limited and the timing seems perfect to benefit from a technical rebound.
The goals will be fixed at GBp 980.5 in a first time and then at GBp 1043.
However, a bearish trend would regain the upper hand if the security crosses GBp 904.5.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.