Inchcape is back on its support area and this is a strategic entry point.

In 2016, the profitability of Inchcape should improve as the net margin growth shows. It should be at 3.59% in 2018 vs 3.42% for the current year and sales are also expected to increase. To date, P/E ratio for 2016 is estimated at 12.15 and at 11.3 for 2017. The company is valued 0.38 times its estimated revenues for this year. This ratio should be taken into consideration by investors.

In the short term, the bearish trend has known a weakening close to the GBp 662.5 mid-term support. A new bullish trend is forming toward the 20-day moving average at GBp 695.2 and the GBp 725.

As a result, active investors can take immediately a long tradein Inchcape thanks to the close proximity of the GBp 662.5 support area. The target price is GBp 725.5. If there is a breakdown of the GBp 662.5 support, investors should close their trades.