Speedy Hire Plc : The bullish trend is not over
By Florian Girard
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 72.5 | GBX 0 | GBX 68.6 | -100% |
Fundamentally, after a brief faltering of the profitability for 2014, consensus estimates are encouraging for 2015. Sales should keep their steady growth while EBITDA is expected to recover a 2 digits growth. Moreover, none analyst is on the “sell” side.
Technically, the stock has been in a bullish trend for several months. The share is currently in an accumulation tunnel limited by the GBp 79 resistance and the GBp69.5 support. Furthermore, it recently started a rebound on contact with the lower trend line and the short term support area.
Consequently, investors may open a long position at current prices and target a revival toward the GBp 79 resistance. A stop loss should be set below 69.5.