Frasers Group plc : A well-established uptrend
Entry price | Target | Stop-loss | Potential |
---|
GBX 659.5 |
GBX 712 |
GBX 662 |
+7.96% |
---|
Sports Direct International could reach its GBp 676 resistance.
The company’s fundamentals are still strong. Sales are estimated to rise by +17.2% in 2013. Analysts from Thomson Reuters consensus have revised upward their EPS and revenue estimates.
Technically, the security is in an uptrend on all time scales and it is supported by moving averages. The bullish trend will not be stopped until prices are above the GBp 610.9 short term support. This trend should allow the stock to cross its GBp 676 short term resistance, supported by the 20-day moving average.
Thanks to these good indicators, it seems relevant to take a long position in Sports Direct International above GBp 676. The target price is GBp 712. A stop loss will be set under the entry point, because a breakdown of this level would damage technical pattern.
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