Nestlé
NESN
Delayed Swiss Exchange - 08/20 05:30:09 pm
81.82CHF
+0.42%

A long term support level to be taken advantage of

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Anaïs Lozach
Analyst

Strategy published on : 06/13/2018 | 09:48

long trade
Target price hit

Entry price : 74.64CHF
Target : 78CHF
Stop-loss : 72.9CHF
Potential : 4.5%

Technically, timing appears good within a medium term time horizon to buy shares in Nestlé. The technical support area at 73.46 CHF effectively limits downside risk and should allow the stock to get back into an upward dynamic.
Investors have an opportunity to buy the stock and target the CHF 78.

Strengths

● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at CHF 73.46 CHF in weekly data.

● Graphically speaking, the timing seems perfect for purchasing the stock close to the CHF 73 support.

● The group's activity appears highly profitable thanks to its outperforming net margins.

● Considering the small differences between the analysts' various estimates, the group's business visibility is good.

● The company is one of the best yield companies with high dividend expectations.

● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.


Weaknesses

● According to forecast, a sluggish sales growth is expected for the next fiscal years.

● The group usually releases earnings worse than estimated.

● The underlying tendency is negative on the weekly chart below the resistance at 79.05 CHF

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