Foxtons Group’s share price was heavily penalized and is now in an oversold situation near to a solid support area (GBp 261.9).

From a fundamental viewpoint, the security is cheap with a P/E Ratio of 13.74x for 2015. Growth perspectives are still encouraging with a progression of sales expected around 15% every year.

Technically, the security fell sharply for several weeks. This fall has lead Foxtons Group towards the GBp 261.9 support area, which could become useful as a stepping stone for a technical rebound. The target of this bullish trend is the GBp 286.9, the short-term resistance. Even though moving averages are still in a bearish trend, the oversold situation could encourage a renewed interest in Foxtons.

Thanks to the technical pattern and Foxtons’ strong fundamentals, active investors can open long positions above GBp 261.9. The downside potential is limited and the timing seems perfect to benefit from a technical rebound.
The goals will be fixed at GBp 286.9 in a first time and then at GBp 309.
However, a bearish trend would regain the upper hand if the security crosses GBp 261.9.