Rank Group was heavily penalized and is now in an oversold situation near to a solid support area.

From a fundamental viewpoint, the company seems undervalued relatively to its peers with a EV/Sales of 0.86. Analysts have revised upward their sales forecasts for 2013 and 2014. With an EPS estimated at 13.64 cts GBP for this year and 14.04 cts GBP for the next year, Rank Group PLC is currently paid 10.36 and 10.07 times the results.

Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the GBp 140 area should stop this trend and allows a technical rebound towards GBp 150. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario. In weekly data, a strong resistance at GBp 157 represent a credible target price.

Considering technical and fundamental elements, it seems to be an appropriate timing to immediately take a long position in Rank Group in order to benefit from the GBp 140 support area. A first target price will be the GBp 150 resistance. A stop loss order will be placed under the mid-term support currently tested. A crossing of GBp 150 would validate a bullish trend in order to reach the weekly resistance at GBp 157.