In the past few sessions, J Sainsbury's share fell sharply and is coming back to a significant support level.

According to Surperformance rating, the company is an opportunity for a trading strategy. Indeed, it is a good compromise between its value and its visibility.
In fact, the business is strong and the company is paid 9.32 time its expected profit for 2014.

The security follows a downward trend in the short term, under the GBp 330 resistance area. However, the selling pressure could run out of steam soon. Indeed, whereas the stock shows an oversold condition, the GBp 305 support area currently tested might stop the bearish trend in the short term. Moreover, the gap opened at GBp 330 could attract price and thus it will be our target.

Therefore, the proximity of the GBp 305 support is an opportunity to take a long position in J Sainsbury. The first goal is a return in the GBp 330 resistance area, that is a potential of 6%. Then, the security has to cross this area in order to re-establish a bullish trend in the short term. A stop loss order can be placed under the support currently tested.