Reed Elsevier is close to an area that might stop the downward trend.

The company enjoys an excellent Surperforamnce rating that underline its profitability, its earnings quality and its positive EPS revisions. The Thomson reuters consensus set an average target price which displays a +9% potential. Revenues and operating margin growth rates add relevance to this investment.

Technically, the security is in a consolidation area limited by the significant 1042 GBp support and the GBp 1188 resistance. Above the lower limit, investors could aim a rebound toward the GBp 1124 pivot point area. The present prices area find the support of the GBp 1059 threshold, the rising trend line and 100- week moving average.

Consequently, investors may open a long trade at current prices and target a reversal toward the GBp 1124 pivot point. This strategy should be covered by a stop loss placed under the GBp 1042 support because a breakdown of this level would invalidate it.