Novae Group Plc : Upward movement expected
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 770.63 | GBX 0 | GBX 758 | -100% |
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.