Superdry plc : Severely punished?
By Pierre Gilles de la Londe
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 884.5 | GBX 0 | GBX 817 | -100% |
From a fundamental viewpoint, analysts' average target price represents a 28% appreciation potential. In this situation, further declines seems limited.
The stock is currently oversold and is trading in a mid-term bearish trend. Supergroup should be able to confirm its current rebound in further sessions. This support means a trading opportunity in order to anticipate a technical rebound toward GBp 943 and by extension toward GBp 992.5.
Therefore, the proximity of the GBp 859 support is an opportunity to take a long position in Supergroup. The first goal is a return in the GBp 943 resistance area. In fact, the security has to cross this area in order to re-establish a bullish trend in the short term. A stop loss order can be placed under the support currently tested.