The GBp 289 support, currently tested, should allow Polypipe Group PLC to rally again.

However, analysts have revised slightly downward their earnings forecasts.
With an EPS estimated at 23.45 cts GBP for this year and 26.49 cts GBP for the next year, Polypipe Group PLC is currently paid 12.6 and 11.2 times the results.

Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the GBp 289 area should stop this trend and allow a technical rebound towards GBp 324.8. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.

The trading strategy can benefit from the proximity of the strong support currently tested in order to buy Polypipe Group with a good timing. The potential gain is around 8%. Investors might place a stop-loss order at GBp 280.3 in order to avoid important losses.