The GBp 371.2 support, currently tested, should allow Mitchells & Butlers to rally again.

The famous British chain of restaurants and pubs enjoys an excellent Surperformance rating, which underlines its business predictability and its very attractive valuation (its PER amounts to 10.32x). The Thomson Reuters consensus’ average target price displays a 29% potential.

After several weeks of horizontal fluctuations within the mid-term range GBp 371.2/429.7, the stock is coming back close to the lower limit of the range. Moving averages are flat and technical indicators illustrate the oversold situation. The GBp 371.2 area is very likely to cause a positive reaction for the coming trading sessions and allow a technical rebound towards the GBp 405.6 mid-term resistance, ie a 9% increase.
This is why active investors should open long positions at current prices. Investors should not insist below the GBp 371.2 and a stop loss order will be set at GBp 370.