Constellation Energy Group, Inc. : Good timing for technical rebound
Entry price | Target | Stop-loss | Potential |
---|
US$36.15 |
US$0 |
US$35.2 |
-100% |
---|
In the past sessions the Constellation Energy's share has suffered a sharp fall and is now coming back, having tested an important support.
From a fundamental viewpoint, the enterprise value is currently low as shown by the ratio “enterprise value/revenue” at 0.69x for 2012. Besides, the price earnings ratio is 14.64x for this year, and 13.41x for the next year.
Technically, if the moving averages are still in downward trend, the positive reaction on $ 35.65 has stopped this trend and allow to aim that scenario of a technical rebound towards the 38.30 USD. In addition, the technical indicators show an oversold condition which reinforces this upward prevision.
In order to take advantage of a technical rebound on Constellation Energy 's share it seems an opportune point to buy the stock at the current price. However we should not continue this strategy under $35.65. At this level we suggest a stop loss.
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