Powerflute’s share price was heavily penalized and is now in an oversold situation near to a solid support area.

From a fundamental viewpoint, the security is cheap with a P/E Ratio of 9.76x for the two next years.
Besides, EV/Sales is low with a ratio at 0.83x for this year.

Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average, currently at GBp 81, shows. Nevertheless, the stock seems in an oversold situation, near to its GBp 75 support in daily data and was 7% down in the last trading sessions. This level might stop the bearish trend in the short term.

Thanks to the technical pattern and Powerflute’s strong fundamentals, active investors can open long trades above GBp 75. The downside potential is limited and the timing seems perfect to benefit from a technical rebound.
The goals will be fixed at GBp 81 in a first time and then at GBp 85.6.
However, a bearish trend would regain the upper hand if the security crosses GBp 75.