Home Retail Group Plc : Strong bullish signal
By Pierre Gilles de la Londe
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 191.1 | GBX 0 | GBX 185.5 | -100% |
Regarding fundamentals Home Retail Group seems to be in a good dynamic. Indeed, sales are estimated in perpetual growth for the next two years. The company is expected to get a good net income for 2015. (+41.8% compared to 2014). As all previous figures, the "Earnings per share" should also increase by 32.5% at GBp 8.75 per share in 2015.
Graphically, a good opportunity has emerged. Indeed prices have recently broke-out the downward trendline which acted as resistance up to know. This kind of symmetrical triangle pattern, often give a strong prices' trend indication in case of breakout or breakdown. In our situation prices are expected to reach the GBp 200 area at least. Moreover the 20-day moving average has recently crossed the 50-day and 100-day moving averages which should feed the rise.
According to both fundamentals and technical analysis, a good opportunity is to getting long on Home Retail Group. The target will be the GBp 200 level and a stop-loss order could be placed under the pivot point of GBp 190.