Kingfisher is the largest home improvement retailer in Europe and the third-largest in the world (behind The Home Depot and Lowe's). The stock climbs after having tested the support line.

The company is expected to grow by 2% in terms of revenues. An improvement in net income by 4% over the last year and a net margin of 5.27% is anticipated. Revenue revisions on Kingfisher are encouraging, 2.2% during the past 12 months. In addition, the company is undervalued with a P/E ratio of 14.7 for the current year and 13.7 for the next year.

Technically, the security recovers from a downtrend having already tested the GBp 354.4 support. This should represent the stepping stone for a rebound to the short term resistance at GBp 369.6 and ultimately the midterm resistance at GBp385.

The GBp 354.4 represents an attractive entry level for investors in order to take a long position on Kingfisher. The target is set at GBp 385 after having overstepped the short term resistance. The stop loss order is below GBP 354.4.