The mortgage runner shares are currently at a tipping point and may resume a rally on today session.

The company usually releases better-than-estimates financial statements. Sales of the British group specialized in first mortgages are expected to grow by 32% this year. An improvement in its net incomes by 8% over the last year for attaining £92 million is previewed. EPS revisions on Paragon are encouraging; analysts’ estimates jumped 7% during the past 12 months. In addition, its low valuation with a P/E ratio of 12.2x the current year and 11.1x for the next year offers an interesting purchase level for investors.

Technically, the security recovers from a weakened situation. The approach toward the midterm support at GBp 365 as well as the climbing trend line push prices up, thus a better likelihood of coming near the GBp 391 area. At present, the stock is in oversold territory, this represents better opportunities for savers interested in long position. Other technical indicators also argue for an upturn, like the orientation of all weekly moving averages, for example.

The GBp 365 represents an attractive entry level for investors in order to take a long position on Paragon. They should seek for GBp 391 and in case of poor performance a stop-loss order could be placed at GBP 356.4.