The GBp 1255 support, currently tested, should allow AVEVA Group shares to rally again.

The company displays solid fundamentals with a low valuation and a strong profitability. EPS are expected to hike from -1.90 pence in 2014 to 12 pence in 2015. Analysts consensus targets a 16% gain potential on average.

The stock is currently oversold and is trading in a mid-term bearish trend. In the short term, this trend is reversed after contact with the GBp 1255 area. AVEVA Group should be able to confirm its rebound in further sessions. This support means a trading opportunity in order to anticipate a technical rebound toward GBp 1383 and by extension toward GBp 1666.

The configuration could quickly take over an uptrend with the combination of all technical and fundamental factors. Most active investors could therefore open buyers positions to aim the GBp 1383; the crossing of this level would open the way to new objectives with a second technical target at GBp 1560. However, the position needs to be protected by a stop-loss order below the GBp 1255.