Rolls-Royce Holdings plc : Good timing to aim for a technical rebound
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 909.63 | GBX 0 | GBX 889 | -100% |
From a fundamental viewpoint, the security is quite cheap with a P/E Ratio of 15.42x for 2015 and 14.02x for 2016.
The security follows a downward trend in the short term, under the GBp 962 resistance area.
In the mid-term, the trend is neutral and the stock has found a support at GBp 906 in daily data. This level has contained all the bearish movement for many days and should help to initiate a technical rebound. In this case, the first target will be the GBp 962 resistance
So as to make the most of a potential technical rebound of Rolls-Royce Holding, 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 962 resistance. Investors should not insist under GBp 906 and are better off placing a stop loss order under this threshold at GBp 889.