Colruyt has a low valuation, suggesting a continuation of prices above the significant technical levels being tested.

According to Thomson Reuters consensus from the latest estimates of analysts, the share is trading, on the basis of the current price, 15.8 and 15.2 times the expected results for the current year and the following year. In terms of enterprise value, which signify the capitalization of the group plus net debt, the company is worth 0.58 times its sales for current prices. Except in case of strong downward revisions of earnings estimates, these low valuation levels should theoretically limit the potential fallback.

The share has a bearish configuration below the EUR 36.84 resistance. Nevertheless, the drop potential is limited by the support area located at EUR 33 in daily data and EUR 34.1 in weekly data. These levels are tested for several weeks and have contained the downward trend, which reinforce their importance.

Considering these elements, the timing seems appropriate to buy the share. The targets will be EUR 36.8 and EUR 38.3. This position will be reduced near the first goal but partially preserved in case of the breakout of the resistance at EUR 36.8, in order to reach the second target at EUR 38.3.