Signet Jewelers could regain its upward trend after having run out of steam.

The company’s Surperformance rating underline the profitability and the earnings quality. Indeed, financial forecasts shows 2 digits growth rate for EBITDA and net income. There is a +17% potential to reach the consensus average target price. Moreover, there is none analyst on the “sell” side.

Technically, the stock keeps an uptrend in the long and in the mid-term. Nevertheless, a slight decline brought back the share on its USD 128.4 relevant support. In this area, prices are backed by the rising 100-day and 20-week moving averages. This zone could act as a stepping stone for an upcoming acceleration.
Consequently, investors may open a long position at current prices and target a reversal toward the USD 136.6 pivot point and by extension the USD 140. A stop loss should be set at USD 127.