Stryker Corporation : The USD 49.84 support area is tested
By Josselin Giraud
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
US$50.75 | US$0 | US$48.3 | -100% |
From a fundamental viewpoint, the security is cheap with a PER of 12.7x for 2012 and 11.25x for 2013. Besides, EV/Sales is low with a ratio at 1.91x for this year.
Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the USD 49.84 area should stop this trend and allow a technical rebound towards USD 52.70. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.
The trading strategy can benefit from the proximity of the strong support currently tested in order to buy the security in a good timing. Investors might placed a stop loss order at USD 48.3 in order to avoid important losses.