Ceconomy AG : Watch out the breakout of resistance
By Oscar Salza
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
€23.88 | €0 | €23.5 | -100% |
According to Thomson Reuters the company is trading, on the basis of current prices, 9.93 and 8.16 times the expected results for the next two years. Besides, the enterprise value is worth 0.18 times its sales. These valuation levels theoretically limit the potential for decline, except in case of strong downward revisions of earnings estimates of the company in the coming months.
The share is trading in bearish channel on the long and mid-term. The security has set up a technical rebound in contact with support level of EUR 20.05. Now the share is testing EUR 24 mid-term resistance, if this level will be crossed we advise a long position in order to aim the target of EUR 26. A stop loss will be placed at EUR 23.5