Inchcape is an automotive retailer and distributor. It has operations in 26 countries across Africa, Asia, Australasia, Europe and South America. Inchcape's current key manufacturer partners are Toyota/Lexus, Scion, Chevrolet, Subaru, BMW, Mazda, Mercedes-Benz, Volkswagen, Audi and Honda.
The security is currently trading in a bullish trend on all time scales and it is testing significant resistance area.

From a fundamental viewpoint, the company has a low valuation as shown by the valuation rating. Moreover, it has good business predictability and a lot of upside potential. One of its main advantages is its low exposition to Europe. At least, it has excellent finances.

Graphically, the stock is in an uptrend. Moving averages are sharply increasing and supported prices. Inchcape is currently testing its short-term resistance at GBp 393.9. A breakout of it should be a strong buy signal and allow the stock to rally toward GBp 418.2, its annual highs.

Therefore, active investors can take a long position in Inchcape when the stock crosses the GBp 393.9 level. The target price will be fixed at GBp 418.2. To avoid important losses, a stop loss should be placed under 20-day moving average, at GBp 379.5.