New Oriental Education & Technology Group Inc. : Running out of steam as opportunity
By Florian Girard
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
US$22.75 | US$0 | US$21.95 | -100% |
The company’s Surperformance rating underline the revenue growth, the sound finances and its profitability. The consensus average target price is displaying an average target price of about 8.9%. Net income and sales should have two digits growth in 2016.
Graphically, in the mid-term the trend is bullish and now bearish in the short term. After a test of the USD 25.5 resistance, prices have come back upon contact with the USD 22.17 support. A rebound started and seems supported by the 50-week MA.
Consequently, investors may open a long position at current prices and target a reversal toward the USD 23.83 resistance in first instance and by extension the USD 24.9 will be targeted. A stop loss order will be set at USD 21.95.