Ashtead Group’s share price was heavily penalized and is now in an oversold situation near to a solid support area.

The firm enjoys a 5 stars Surperformance investor rating which underline its profitability, its earning quality and the positive revenue estimates revisions. The consensus average target price displays a +23% potential.

Technically, the share keeps an uptrend in the long and in the mid-term. Weekly moving averages remains well oriented. Nevertheless, a recent decline brought back the share near a support area, which is relevant in daily data as well as in weekly data.

Consequently, investors may open a long trade at current prices and target a reversal toward the GBp 1120 resistance. A stop loss will be set at GBp 1029 in case of further correction.