The GBp 110.7 support, currently tested, should allow Ladbrokes to rally again.

From a fundamental viewpoint, the online betting and gaming company displays attractive profitability and valuation levels. Net income is expected to hike from GBP 67 million in 2013 to 94.4 million in 2014. The P/E ratio is low: 12.5x in 2014 and 13.3x in 2015. Analysts covering the stock target GBp 132 on average.

The stock is currently oversold and is trading in a mid-term bearish trend. In the short term, this trend is reversed after contact with the GBp 110.7 area. Ladbrokes should be able to confirm its rebound in further sessions. This support means a trading opportunity in order to anticipate a technical rebound toward the GBp 129 pivot point.

The trading strategy can benefit from the proximity of the strong support currently tested in order to buy Ladbrokes in a good timing. The target price will be the GBp 129. Investors might place a stop loss order below GBp 110.7 in order to avoid important losses.