In the past few sessions, WS Atkins shares have suffered from a sharp fall and is now coming back to significant level support.

From a fundamental viewpoint, the company seems undervalued relatively to its peers with a EV/Sales ratio of 0.66.
However, analysts have revised slightly downward their earnings forecasts.
With an EPS estimated at 95.3 cts GBP for this year and 103.85 cts GBP for the next year, WS Atkins is currently paid 14.61 and 13.4 times the results.

This situation gives credit to a potential technical rebound. Thus, the stock could find new energy and would rise towards the next GBp 1500 resistance thanks to the support and the trendline currently tested.

So as to make the most of a potential technical rebound of WS Atkins, it seems opportune to open a long position at current prices. A confirmation of this pattern would enable the security to reach the GBp 1500 resistance, with a potential gain of around 10%. Investors should not insist under GBp 1370 and are better of placing a stop loss order under this threshold.