Bunge Global SA : In oversold situation
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
US$69.49 | US$73.25 | US$66.2 | +5.41% |
From a fundamental viewpoint, the security is cheap with a PER of 9.2x for 2013 and 8.48x for 2014. Besides, EV/Sales is low with a ratio at 0.23x for this year.
Technically, even if moving weekly averages are still in a downtrend, a positive reaction in the USD 68.5 area, corresponding to the 50-week moving average, should stop this trend and allow a technical rebound towards USD 73.25. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.
In this context, investors could take a long position in case of a comeback to the USD 68.5 long term support to target USD 73.25. A stop loss will be set below USD 68.5.