The technical thresholds currently tested should allow Dunelm Group to rally again.

The company keeps good fundamentals with a reasonable valuation and a high profitability. Analysts covering the stock target on average a 13% appreciation potential.

Technically, the security is currently in an oversold situation. The stock folded sharply in the late sessions, and is back now on the GBp 828 support and the upward trendline. Those thresholds are likely to allow a significant technical rebound toward the GBp 882.5 resistance.

Therefore, it seems opportune to take a long position on Dunelm Group at current prices, in order to target GBp 882.5. A stop loss will be placed under GBp 828.