The GBp 734.5 support, currently tested, should allow Novae Group Plc to rally again.

In the recent months, the earnings estimates for the next year have been regularly revised upward by analysts. Novae Group is currently paid 9.24 and 9.31 times the results, which is a low valuation.

Technically, the security fell sharply for several weeks. This fall has lead Novae Group towards the GBp 734.5 support area, which could become useful as a stepping stone for a technical rebound. The target of this bullish trend is the GBp 845 level after the breakout of the GBp 786 resistance. Even though moving averages are still in a bearish trend, the oversold situation could encourage a renewed interest in Novae Group.

Considering technical and fundamental elements, it seems to be an appropriate timing to immediately open a long position in Novae Group in order to benefit from the GBp 786 breakout. The main target price will be the GBp 845 level. A stop loss order will be placed at GBp 758.