In the past few sessions, JD Sports Fashion shares have suffered from a sharp fall and is now coming back on significant level support.

From a fundamental viewpoint, the security is cheap with a PER of 8.86x for 2013 and 6.72x for 2014. Besides, EV/Sales is low with a ratio at 0.23x for this year.

Currently, the stock is oversold and, in the mid-term, it is trading in a bearish trend. In the short term, this trend is reversed upon contact with the GBp 710 area. JD Sports Fashion should be able to confirm its increase in the next trading sessions. This support is a trading opportunity in order to anticipate a technical rebound towards GBp 756.

Therefore, the proximity of the GBp 710 pivot point and a lower limit of the bullish channel are an opportunity to take a long position in JD Sports Fashion. The first goal is a return in the GBp 756 resistance. A stop loss order can be set under the level currently tested.