The GBp 904.5 support area, currently tested, might facilitate a technical rebound. The company’s fundamentals could validate this scenario.

According to Surperformance ratings, the company is an opportunity for a trading strategy. Indeed, it is a good compromise between its value and its visibility. Moreover, the valuation is relatively low with a P/E ratio at 11.4 for 2014.

The security follows a downward trend in the short term, under the GBp 980.5 resistance area. In the mid-term, the trend is neutral. The stock is trading within a range between GBp 904.5 and GBp 1043. Mondi is not likely to continue its downtrend because it is near to the strong GBp 904.5 and it is oversold.

Thanks to the technical pattern and Mondi’s strong fundamentals, active investors can take a long position above GBp 904.5. The downside potential is limited and the timing seems perfect to benefit from a technical rebound.
The goals will be fixed at GBp 980.5 in a first time and then at GBp 1043.
However, a bearish trend would regain the upper hand if the security crosses GBp 904.5.