Cyberonics, Inc. : Perfect timing to aim a technical rebound
January 29, 2013 at 08:58 am EST
By
Entry price | Target | Stop-loss | Potential |
---|
$44.64 |
$0 |
$41.4 |
-100% |
---|
The USD 42.7 support, currently tested, should allow Cyberonics, to rally again.
From a fundamental viewpoint, the company has a value in line with the industry as its enterprise value ratios shows.
Nonetheless, recently, EPS estimates for the two coming years have been revised upward by analysts. This positive fact opens the way for a better evaluation of the security by investors.
Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average shows. Nevertheless, the stock seems in an oversold situation, near to its USD 42.7 support. This level might stop the bearish trend in the short term.
Thanks to the technical pattern and Cyberonics' fundamentals, active investors can take a long position above USD 42.7. The downside potential is limited and the timing seems perfect to benefit from a technical rebound. The goals will be fixed at USD 49.9. However, a bearish trend would regain the upper hand if the security crosses USD 42.7.
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