J Sainsbury plc : A double bottom to reverse the downtrend
Entry price | Target | Stop-loss | Potential |
---|
GBX 353.3 |
GBX 0 |
GBX 337.5 |
-100% |
---|
The stock looks for a recovery after two months on a systematical downtrend.
The company is actually trading 10.4 times its earnings for this year and hence represents an attractive value for market operators. Earnings per share are expected to growth by 5% this year (32.1 for 2013 to 33.8 for the current year).
J Sainsbury is oversold and actually experiences a recover from a down tendency; with a double bottom on the support level at GBp 344.9 the stock is now ready for a reversal of the downtrend into an uptrend. According to technical analysis the share price should increase on the ensuing sessions, this in order to reach the target at GBp 378.4.
The current price GBp 351 looks like a good entry point for active investors with a stop-loss below GBp 345.
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