The GBp 684.5 support area, currently tested, might facilitate a technical rebound. The company’s fundamentals could validate this scenario.

From a fundamental viewpoint, EPS should be higher by 146% this year compared to the previous one. Indeed, the company is expected to generate more turnover and improve in the same time its margins.

The security follows a downward trend in the short term, under the GBp 802.5 resistance area. In the mid-term, the trend is neutral. The stock is trading within a range between GBp 684.5 and GBp 802.5. Fresnillo is not likely to continue its downtrend because it is near to the strong GBp 684.5 support and it is oversold.

Therefore, it seems opportune to take a long position on Fresnillo at current prices. A confirmation of this pattern would enable the security to reach the GBp 802.50 resistance. Investors should not insist below the GBp 684.5 and a stop-loss order should be placed under this threshold.