Saputo Inc. : Technical accumulation phase
Entry price | Target | Stop-loss | Potential |
---|
CA$34.99 |
CA$0 |
CA$33.8 |
-100% |
---|
After a breathing stage, the share is likely to accelerate again.
The company has strong fundamentals. Sales have constantly increase since 2012. The operating income is expected to rise of 10% after +18% in 2014. The share has still a +4% potential to reach the consensus average price target.
Technically, the security is consolidating in a wide tunnel. It has successfully tested the CAD 37.25 resistance and is now evolving near the CAD 34.75 short term support. Moreover, the stock is very close from its lower trend line. Those levels and the fact that the share’s price is below its 20-day moving average and the 50-day moving average militate for a speedup.
Consequently, investors can take a long position at current prices and target the CAD 37.25 short term resistance area. A stop loss should be set at CAD 33.8.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.