The GBp 904.5 support area, currently tested, might facilitate a technical rebound. The company’s fundamentals could validate this scenario.
According to Surperformance ratings, the company is an opportunity for a trading strategy. Indeed, it is a good compromise between its value and its visibility. Moreover, the valuation is relatively low with a P/E ratio at 11.4 for 2014.
The security follows a downward trend in the short term, under the GBp 980.5 resistance area. In the mid-term, the trend is neutral. The stock is trading within a range between GBp 904.5 and GBp 1043. Mondi is not likely to continue its downtrend because it is near to the strong GBp 904.5 and it is oversold.
Thanks to the technical pattern and Mondi’s strong fundamentals, active investors can take a long position above GBp 904.5. The downside potential is limited and the timing seems perfect to benefit from a technical rebound.
The goals will be fixed at GBp 980.5 in a first time and then at GBp 1043.
However, a bearish trend would regain the upper hand if the security crosses GBp 904.5.
Mondi plc is a United Kingdom-based company, which makes packaging and paper solutions that are sustainable by design. The Company's segments include Corrugated Packaging, Flexible Packaging and Uncoated Fine Paper. The Corrugated Packaging segment's products include containerboard and corrugated solutions. The Flexible Packaging segment's products include kraft paper, paper bags, consumer flexibles, functional paper and films, and pulp. The Uncoated Fine Paper segment's products include Uncoated fine paper and Pulp. The Company offers its customers a range of sustainable packaging and paper products across several end-markets, such as consumer and retail, building and construction, industrial and agriculture, and paper for printing. The Company's converted corrugated solutions and flexible packaging products are predominantly delivered to customers regionally, while the majority of its pulp, containerboard, kraft paper and uncoated fine paper is sold globally.