Home Capital Group Inc. : Running out of steam as opportunity
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
CA$56.18 | CA$0 | CA$54.9 | -100% |
From a fundamental viewpoint, the security has many qualities. According to Thomson Reuters, sales are expected to rise by more than 15% in 2013. Moreover, at the current price, the company is trading 7.85 times its earnings for this year and thus has a significant potential.
Following a bullish wave, the stock now shows a slight decline that led it towards its upward trend line, which is now corresponding to the 100-day moving average. On this level, remobilization of buyer flows would allow an uptrend in the medium and long term.
Given this configuration, it seems opportune to take a long position at the current price. The first objective will be set at USD 58.8. A stop loss will be fixed below the USD 55 support to limit the risk.