The technical thresholds currently tested, should allow FirstGroup to rally again.

The company displays good fundamentals as underlined by Surperformance rating. It has a low valuation, with an EV/Sales ratio of 0.41x in 2015. Moreover, analysts covering the stock target on average a 39% appreciation potential.

Graphically, the stock was heavily penalized lately, and is coming back now on the GBp 94.3 support as well as the downward trendline. This situation gives credit to a potential technical rebound. Thus, the stock could find new energy and would rise towards the next GBp 100.5 resistance.

Therefore, the timing seems opportune to take a long position in FirstGroup. The first goal is a return in the GBp 100.5 resistance area. A stop loss order can be placed under the support currently tested.