The GBp 751.5 support area, currently tested, might facilitate a technical rebound. The company’s fundamentals could validate this scenario.

From a fundamental viewpoint, the security has a reasonable valuation, with a P/E Ratio of 14.3x for 2016 and an EV/Sales ratio of 0.96x for this year. Also, the company is characterized by a strong growth potential, as Thomson Reuters estimates show.

Technically, the security fell sharply for several weeks. This fall has lead it towards the GBp 766 support area, which could become useful as a stepping stone for a technical rebound. The target of this bullish trend is the GBp 819.5 pivot point. Even though moving averages are still in a bearish trend, the oversold situation could encourage a renewed interest in the stock.

Thus, a long position can be opened on the security to aim GBp 819.5 as a first target, and a stop loss will protect the position under GBp 766.5.