Northgate shows relatively strong fundamentals and is coming back to attractive prices.

According to Surperformance© ratings, the company is an opportunity for a trading strategy (Trading rating: 96%). Indeed, it usually posts better-than-expected financial statements as in 2013 with a low valuation. Moreover, brokers have lately revised upward their revenues' estimates and count on EPS of GBp 40 for this year.

In term of technical analysis, the GBp 479 support,already tested during the summer, is a key point for an upward reversal of the stock. This area is indeed the low bound of a trading range GBp 479/516.5.
This situation gives credit to a potential technical rebound. Thus, the stock could find new energy and would rise towards the next GBp 500 resistance and then GBp 516.5.

Considering technical and fundamental elements, it seems to be an appropriate timing to immediately open a long position in Northgate in order to benefit from the GBp 479 support area. A first target price will be the GBp 500 resistance, ie a potential of 3.4%. The main objective will be at GBp 516.5.
A stop loss order will be placed under the mid-term support currently tested.