The GBp 182.5 support area, currently tested, might facilitate a technical rebound. The company’s fundamentals could validate this scenario.

QinetiQ Group shows sound financials, with an attractive valuation and an increasing profitability. Moreover, analysts covering the stock are optimistic and target a 17% potential return on average.

Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average shows. Nevertheless, the stock seems being oversold, near to its GBp 182.5 support in daily data. This level seems to stop the short term slumping, allowing a technical rebound over the GBp 189 pivot point.

Active investors can open a long position on the stock. The downside potential is limited and the timing seems perfect to benefit from a technical rebound. The goals will be fixed at GBp 195 then GBp 208. However, a bearish trend would regain the upper hand if the security crosses GBp 182.5.