Finning International Inc. : The CAD 22.7 support area is tested
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
CA$23.1 | CA$0 | CA$21.6 | -100% |
From a fundamental viewpoint, the security is cheap with a PER of 11.86x for 2012 and 9.55x for 2013. Besides, EV/Sales is low with a ratio at 0.81x for this year.
After several weeks of fluctuations within the mid-term range CAD 21.8/28, the stock is coming back close to the lower limit of the range.
Moving averages are flat and technical indicators illustrate the oversold situation. The CAD 22.7 area could cause a positive reaction for the coming trading sessions and allow a technical rebound towards the CAD 24.55 mid-term resistance.
The trading strategy can benefit from the proximity of the strong support currently tested in order to buy Finning International in a good timing. The potential gain is 6%. Investors might placed a stop loss order at CAD 21.6 in order to avoid important losses.