The GBp 290 support, currently tested, should allow N Brown Group plc to rally again.

From a fundamental viewpoint, the security is cheap with a P/E Ratio of 11.9x for 2016 and 10.56x for 2017. Besides, EV/Sales is low with a ratio at 1.26x for this year.

Currently the stock is oversold and, in the mid-term, is trading in a bearish trend. In the short term, this trend is reversed upon contact with the GBp 290 area. N Brown Group should be able to confirm its increase in the next trading sessions. This support is a trading opportunity in order to anticipate a technical rebound towards GBp 321.1 and by extension towards GBp 365 (pivot point).

So as to make the most of a potential technical rebound of N Brown Group, it seems opportune to open a long trade at current prices. A confirmation of this pattern would enable the security to reach the GBp 321 resistance. Investors should not insist under GBp 290 and are better of placing a stop loss order under this threshold.