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

According to Surperformance© ratings, the company is an opportunity for a trading strategy.

Technically, the security fell sharply for several weeks. This fall has lead the stock towards the GBp 677 support area, which could become useful as a stepping stone for a technical rebound. The target of this bullish trend is the GBp 722 resistance, corresponding also to a trendline. Even though, moving averages are still in a bearish trend, the oversold situation could encourage a renewed interest in Inchcape.

The trading strategy can benefit from the proximity of the strong support currently tested in order to buy Inchcape with a good timing. The potential gain is around 6%. Investors might place a stop loss order at GBp 657 in order to avoid important losses.