Greggs’ share price was heavily penalized and is now in an oversold situation near to a solid support area.

According to Surperformance© ratings, the company constitutes an opportunity for a trading strategy. Indeed, it usually posts better-than-expected financial statements.

The security follows a downward trend in the short term, under the GBp 1017 resistance area.
The trend is bearish also in the mid-term, under GBp 1017. However, the selling pressure could soon run out of steam. Indeed, whereas the stock shows an oversold condition, the GBp 884 support area currently tested might stop the bearish trend in the short term.

Thanks to the technical pattern and Greggs’ strong fundamentals, active investors can open a long trade above GBp 884. The downside potential is limited and the timing seems perfect to benefit from a technical rebound.
The main goal will be fixed at GBp 1017.
However, a bearish trend would regain the upper hand if the security crosses GBp 884.