Restaurant Group : Stock running out of steam as an opportunity
Entry price | Target | Stop-loss | Potential |
---|
GBX 680 |
GBX 0 |
GBX 650 |
-100% |
---|
Restaurant Group should regain its upward trend after having ran out of steam.
Many major investment banks recently raised their price target. The firm’s sales has known a steady growth over the past 3 fiscal periods, around 8%. The operating income is expected to increase of 11%. Moreover, the share still has a 15% potential to reach the consensus’ average price target.
Technically, the share is evolving in a wide tunnel for the last 2 months and briskly reacted against the GBp 738.5 short term resistance. The stock is now in the 676.5 GBp short term support area and below its 3 moving averages in daily data. Those two arguments militate for a re-boost of the security. Then investors can take a long position at current prices and target the 738.5 GBp resistance and by extension the upper trend line. A stop loss should be set at GBp 650.
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