Premier Farnell plc : In an oversold condition
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 166.4 | GBX 0 | GBX 158.9 | -100% |
Moreover, net and gross margin are expected to increase in a 2018 horizon.
Analysts who's covering the stock have an average target price of GBp 212, which give a 27% theoretical potential on current prices.
Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the GBp 162.7 area should stop this trend and allow a technical rebound towards GBp 176. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.
So, as to make the most of a potential technical rebound on Premier Farnell, it seems opportune to open a long position at the current price. A confirmation of this pattern would enable the security to reach the GBp 189.2 resistance, with a first target at GBp 176. Investors should not insist under GBp 162.7 and are better of placing a stop loss order under this threshold.