John Wood Group PLC : An appropriate purchase level
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 739.5 | GBX 0 | GBX 709 | -100% |
According to Surperformance rating, the company is an opportunity for a trading strategy. Indeed, it is a good compromise between its value and its visibility.
The stock is coming back close to an important support (GBp 716.5) and a slant.
Moving averages are downward oriented and technical indicators illustrate the oversold situation. The GBp 716.5 area could cause a positive reaction for the coming trading sessions and allow a technical rebound towards the GBp 775 mid-term resistance and then the long-term target price is GBp 815.
Therefore, the proximity of the GBp 716.5 support is an opportunity to take a long position in John Wood Group. The first goal is a return in the GBp 775 resistance area, that is a potential of 4.8%. In fact, the security has to cross this area in order to re-establish a bullish trend in the short term. A stop loss order can be placed under the support currently tested.