The GBp 985.5 support, currently tested, should allow Babcock International Group to rally again.

According to Surperformance ratings, the company constitutes an opportunity for a trading strategy. The consensus remains strongly buyer with an average target price displaying a +22% potential. Moreover, the net income is expected to increase about 20% in 2016.

The stock is currently oversold and is trading in a mid-term bearish trend. A recent sharp drop led the stock near the GBp 985 support. This medium term threshold should stop the bearish trend as the 20-week MA remains well oriented.

Consequently, it seems to be an appropriate timing to immediately open a long position in Babcock International Group in order to benefit from the support area. A first target price will be the GBp 1051 resistance, i.e. a potential of 6.5%. A stop loss order will be placed under the mid-term support currently tested. Only a crossing of GBp 1051 would validate a bullish trend in order to aim for a higher target price.