The upward trend could come to support Electrocomponents in the coming sessions.

According to Surperformance ratings, the group has strong fundamentals, both in terms of business predictability and valuation. Based on current prices, the company is valued at 0.95 times its sales.

Technically, the uptrend in the medium and long term should protect the stock of a major downtrend. In the short term, a decline has lead the share to the GBp 231.4 support. Therefore, a technical rebound will fix an objective near the GBp 246.2 short-term resistance.

In this configuration, a decrease seems unavoidable in the GBp 231.4 area. Investors could take a buy order on this level and get a good entry point with a stop loss below the medium term support.