Ferrexpo plc : The GBp 188.6 for a technical rebound
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 205.9 | GBX 0 | GBX 179.4 | -100% |
From a fundamental viewpoint, the security is cheap with a PER of 6.42x for 2013 and 6.29x for 2014. Besides, EV/Sales is low with a ratio at 1.31x for this year.
Currently the stock is oversold and, in the mid-term, it is trading in a bearish trend. In the short term, this trend should stop upon contact with the GBp 188.6 area. This support is a trading opportunity in order to anticipate a technical rebound towards GBp 240.6.
Considering technical and fundamental elements, it seems to be an appropriate timing to take immediately a long position in Ferrexpo in order to benefit from the GBp 188.6 support area. A first target price will be the GBp 240.6 resistance. A stop loss order will be placed under the mid-term support currently tested. Only a crossing of GBp 240.6 would validate a bullish trend in order to aim a higher target price.