J Sainsbury plc : Important volume on the stock
By Arnaud Le Berre
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 398.2 | GBX 420 | GBX 389 | +5.47% |
Fundamentally, valuation of the company remains relatively attractive compared to its peers with a EV/sales ratio of 0.41x for this year and a P/E ratio of 12.4 for the same period.
Graphically, the breakout of the GBp 399 short term resistance, in daily closing price, will open new bullish target price towards the upper limit of the bullish channel. The 20-semaine moving average, and the great volume on the stock, will help the stock to go through the obstacle.
Investors could buy the security above GBp 399 and target GBp 420. A stop loss should be set just below the effective entry point.