In the past few sessions, Mattress Firm Holding Corp shares have suffered from a sharp fall and is now coming back to significant level support.

From a fundamental viewpoint, Mattress Firm Holding seems undervalued in terms of enterprise value. Based on the current price, its market capitalization, plus its net debt, represents 1.19 times its revenues.

Technically, the security is in a negative configuration in the short term as the bearish trend of the 20-day moving average, currently at USD 66.8, shows. Nevertheless, the stock seems in an oversold situation, near its USD 59.85 support in daily data and a well-oriented trendline. This level might stop the bearish trend in the short term in order to reach the next resistance at USD 65.3.

Considering technical and fundamental elements, it seems to be an appropriate timing to open a long position in Mattress Firm Holding in order to benefit from the USD 59.85 support area. A first target price will be the USD 65.3 resistance, i.e. a potential of around 8%. A stop loss order will be placed under the support at USD 58.3.