Südzucker AG : Perfect timing to aim a technical rebound
April 23, 2013 at 09:34 am
By
Entry price | Target | Stop-loss | Potential |
---|
€30.37 |
€0 |
€29.15 |
-100% |
---|
In the past few sessions, Suedzucker' share has suffered from a sharp fall and a rebound seems to occur on the EUR 30.2 level.
From a fundamental viewpoint, the company seems undervalued relatively to its peers with a EV/Sales ratio of 0.92.
In the recent months, earnings estimates for the next year are regularly revised upward by analysts.
Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the EUR 30.2 area should stop this trend and allow a technical rebound towards EUR 32.1. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.
So as to make the most of a potential technical rebound, it seems opportune to take a long position at the current price to target EUR 32.1. Investors should not insist under EUR 29.2 and are better to place a stop loss.
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