In the past few sessions, Northgate share has suffered from a sharp fall and is now coming back to significant level support.

According to Surperformance© ratings, the company constitutes an opportunity for a trading strategy. Furthermore, the firm enjoys a great business predictability, a good profitability and its current P/E ratio is below the industry average. In addition, the consensus average target price is displaying an upward potential of 20%.

Technically, the stock has a bullish trend in the long term, neutral in the medium term and bearish in the short one. After several weeks of horizontal fluctuations the share is testing the GBp 538 support area. This zone match with the rising 100-week MA and could thus initiate a technical rebound.

Therefore, the proximity of the GBp 538.5 support is an opportunity to go long on Northgate. The first goal is a return in the GBp 557.5 resistance area. In fact, the security has to cross this area in order to re-establish a bullish trend in the short term. A stop-loss order can be placed under the currently tested support.