US Ecology, Inc. : The USD 39.2 area for a technical rebound
Entry price | Target | Stop-loss | Potential |
---|
$39.82 |
$0 |
$37.8 |
-100% |
---|
US Ecology's share price was heavily penalized and is now in an oversold situation near to a solid support area.
From a fundamental viewpoint, the company should know a good raise regarding its sales in 2014 (expected to grow by 119% between 2013 and 2014). EPS has been revised upward by analysts this year which should provide confidence to investors. The yield is also expected to grow in 2014.
US Ecology seems to be in an oversold situation as show by indicators. This situation gives credit to a potential technical rebound. Thus, the stock could find new energy and would rise towards the next USD 44.35 resistance. Moreover, prices are in contact with the upward trendline which should feed the rise.
Considering technical and fundamental elements, it seems to be an appropriate timing to take immediately a long position in US Ecology in order to benefit from the USD 39.25 support area. A first target price will be the USD 44.4 resistance. A stop loss order will be placed under the mid-term support currently tested.
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