Associated British Foods is in an over-sold situation and is near to an area that might stop the short term downward trend.

The security has consolidated in a tunnel limited by the significant 2863 support and the GBp 3133 resistance. Many technical arguments are in favor of a rise. The share is currently in the support area that already worked well twice, allowing a technical rebound. Both in daily and weekly data, the stock is close to its lower trend line. Moreover, in weekly data, moving averages are rightly oriented.

As a result, active investors can now take a long position in the security and target the first relevant short term resistance at GBp 3133. A stop loss should be set under the entry point. The breakout of this level would imply further consolidation.