Public Service Enterprise Group' stock should bounce thanks to a major bullish trend line.

From a fundamental viewpoint, the security is cheap with a P/E ratio of 13.4x for 2013 and 13.5x for 2014. According to Surperformance ratings, profitability of the company is important as the net margin is at 11.6%. Analysts have largely revised upward their earnings per share estimates.

The security follows a downward trend in the short term, under the USD 33.2 resistance area.
In the mid-term, the trend is neutral. The stock is trading within a range between USD 31.2 and USD 33.2. Public Service Enterprise Group is not likely to continue its downtrend because it is near to the GBp 32.1 support and is oversold.

So as to make the most of a potential technical rebound of Public Service Enterprise Group, it seems opportune to take a long position at the current price. A confirmation of this pattern would enable the security to reach the USD 34.5 pivot point, with a potential gain of 6%. Investors should not insist under the bullish trend line and are better off placing a stop loss order under this threshold.