Frasers Group plc : The bullish trend continues
October 30, 2012 at 10:09 am
By
Entry price | Target | Stop-loss | Potential |
---|
GBX 404.1 |
GBX 0 |
GBX 395 |
-100% |
---|
Sports Direct International is trading in a bullish trend and several arguments argue for the continuation of this trend.
The company shows strong fundamentals. Firstly, the high valuation of the group shows a great investors confidence in it because there are ready to pay a high price for the stock. Moreover, the consensus revised upward EPS estimates for this year and that let see a great potential for the security on the stock market.
Technical patterns are in the green: prices are up for several months. The reversal should continue in the coming trading sessions. The 20-day moving average should help to exceed the GBp 410 long term resistance.
Thanks to these good indicators, it seems relevant to take a long position in Sports Direct International at the current price. The target price is the GBp 435. A stop loss will be fixed under the GBp 400.
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