American Woodmark Corporation : Perfect timing to aim a technical rebound
Entry price | Target | Stop-loss | Potential |
---|
$36.06 |
$0 |
$34.6 |
-100% |
---|
American Woodmark’ share price was heavily penalized and is now in an oversold situation near to a solid support area.
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. Moreover, brokers have lately revised upward their revenues' estimates and count on EPS of USD 1.45 for the fiscal year 2014.
American Woodmark is oversold because it is near to the USD 35.8 short term support. This situation and the 50-day moving average support gives credit to a potential technical rebound. Thus, the stock could find new energy and would rise towards the next USD 39 resistance.
So as to make the most of a potential technical rebound of American Woodmark, 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 39 resistance, with a potential gain of 8.15%. Investors should not insist under USD 35.8 and are better off placing a stop loss order under this threshold.
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