Premier Farnell could regain its upward trend after having run out of steam.

The group enjoys encouraging sales estimates from the Thomson Reuters' consensus. Moreover, the valuation of the company is quite low with a PER of 12.58x and a EV/sales ratio of 1.01x for 2014.

Following a bullish wave, the stock now shows a slight decline that led it towards its GBp 201.1 medium-term support. On this level, remobilization of buyer flows allowed a rebound and the security is now supported by the 100-day moving average. Hence, prices may resume its upward trend and reach its GBp 218.5 short term resistance.

Investor can take a long position at the current price to benefit from the medium and long term trend. The objective is GBp 218.5 then GBp 236.3. A stop loss is placed under GBp 201.1.