Booker Group : The technical rebound is coming
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 177.4 | GBX 0 | GBX 172.2 | -100% |
The EV/Sales ratio show a low valuation of the company (0.6x for 2016). Moreover, Booker group is a "growth" company with around 10% revenue progression expected for the next years.
Technically, the uptrend in the medium and long term should cover the equity of a major downtrend. In the short term, a decline has lead the share near the GBp 175.9 support. Therefore, if a technical rebound takes place the target would be fixed near the GBp 183.6 short-term resistance and then on the recent high at GBp 190.
In presence of this pattern, a technical rebound seems to happen in next trading session. Investors could open a long trade on this level in order to benefit from an interesting entry point with a stop-loss below the medium term support.