Halma is close to an area that might stop the downward trend.

By 2016, it seems that Halma's profitability could significantly increase. Indeed, net margin should be at 14.5% in 2016 against 13.6% for the current year. Sales are also expected to increase (from 619 million in 2013 to 739 million in 2016).

In the short term, the bearish trend has known a weakening close to the GBp 560 mid-term support. This area should stop the movement and help to recover (support + upward trendline in daily and weekly data).

As a result, active investors can take immediately a long position in Halma thanks to the close proximity of the GBp 560 support area. The target price is GBp 596.5 and in case of breakout of this level, the second target price would be GBp 623. If there is a breakdown of the GBp 560 support, investors should close their positions (at GBp 549).