Premier Farnell plc : The pivot point to buy
Entry price | Target | Stop-loss | Potential |
---|
GBX 167.6 |
GBX 0 |
GBX 164.7 |
-100% |
---|
Premier Farnell is close to an area that might stop the downward trend.
From a fundamental viewpoint, the company shows positive information with an estimated P/E ratio of 12.5x for the current year. Furthermore, the EV/Sales ratio is 0.89x and it confirms the low valuation. Revenues and operating margin growth rates add relevance to this trading strategy.
The area of the GBp 166.2 pivot point should enable the stock to have a new bullish trend. The long term support which is not far from this level, add relevance to the strategy. Technically, above these levels, 4-traders analysts are optimistic and count on a return toward the short and mid-term resistances.
Investors can open a long trade in the current area to benefit from the pivot point. In first instance, the target price will be the next resistance at GBp 180.4. In case of breakdown of the GBp 166.2 support at the closing price, investors should close their positions.
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