Marks & Spencer performed +24% on the stock market since the 1st of January. However, the stock was heavily penalized after touching the bullish slant around GBp 485, which drove prices 16% down. This correction was simply technical and a V-bottom pattern set up on the GBp 418 support. The recent pull-back which led the stock on the GBp 470 unveiled an attractive price for a long position.

From a fundamental viewpoint, the company seems undervalued relatively to its peers with an EV/Sales ratio of 0.99x. Also, the company is currently paid 14.3x its earnings per share for 2014 and 12.5x for 2015.

Thus, the technical and fundamental configuration argue in favor of a return towards the GBp 489 resistance and, then, a bullish continuation in direction of the increasing trend line around GBp 510. A stop loss will be placed under the pivot point.