In the past few sessions, Tech Data share has suffered from a sharp fall and is now coming back on a significant level support.

From a fundamental viewpoint, Tech Data is undervalued in terms of enterprise value. Based on the current price, its market capitalization plus its net debt, represents 0.05 times its revenues.
This valuation is just 8.14 and 7.57 times the two next years earnings.

Technically, the security is in a negative configuration in the short term as the bearish trend of the 20-day moving average, currently at USD 45, shows. Nevertheless, the stock seems in an oversold situation, near to its USD 42.8 long-term support, because it was 3% down in the last trading sessions. This level might stop the bearish trend in the short term.

Therefore, the proximity of the USD 42.8 support is an opportunity to take a long position in Tech Data once this level is reached. The first goal is a return in the USD 46.6 resistance area, which represent a potential of 8.9%. Thus, the security will have to cross this area in order to re-establish a bullish trend in the short term. A stop loss order can be placed under the support currently tested.