Lookers could reach the GBp 130 resistance in the short term.

From a fundamental viewpoint, the company is trading at a low level as shown by the ratio “enterprise value/revenue” at 0.22x. P/E ratio is moderate (estimated at 15.81x in 2013).

Technically, the stock is moving in an upward trend for many weeks. This movement reflects a buyer enthusiasm confirmed also by the well orientation of the moving averages. The security is going toward GBp 130 and that would represent our main objective.

Therefore, investors will benefit from the current area near the 20 and 50-day moving average to take a long position in the stock. The objective will be set at GBp 130. Once the position is opened, a stop loss should be fixed under effective entry point to protect against a trend reversal.