Home Retail Group Plc : The GBp 131.3 for a technical rebound
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 134.2 | GBX 0 | GBX 129.8 | -100% |
This valuation is only 11.45 and 10.54 times the two next years earnings.
After several weeks of a downward movement, the stock is coming back close to an important daily support (GBp 131.3). On this level, a consolidation phase is forming corresponding to a probable end of the bearish movement. We should use this level to open a long trade on the stock with the GBp 140 as first goal (20-day moving average) and then the GBp 148.8 (first resistance).
A stop loss order can be placed under the support currently tested at GBp 129.8.