Debenhams Plc : Technical rebound expected
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 73.3 | GBX 0 | GBX 71.6 | -100% |
Besides, EV/Sales is low with a ratio at 0.4x for this year.
The security follows a downward trend in the short term, under the GBp 78 resistance area.
The trend is bearish also in the mid-term, under GBp 78. However, the selling pressure could soon run out of steam. Indeed, whereas the stock shows an oversold condition, the GBp 72.95 support area currently tested might stop the bearish trend in the next trading sessions.
Considering technical and fundamental elements, it seems to be an appropriate timing to open a long trading in Debenhams in order to benefit from the GBp 72.95 support area.
A first target price will be the GBp 78 resistance, ie a potential of 6%. A stop-loss order will be placed under the mid-term support currently tested.