Halfords Group is close to an area that might stop the downward trend.

In 2015, the profitability of Halfords Group should improve as the net margin growth shows. It should be at 6.77% in 2017 against 6.05% for the current year and sales are expected to increase. To date, the P/E ratio for 2015 is estimated at 14.04 and at 13.09 for 2016. The company is valued 0.95 times its estimated revenues for this year. This ratio should be taken into consideration by investors.

From a technical viewpoint, the trend is neutral in the short term. The latest downtrend pushed the security upon contact with important levels (in the mid and long-term). These supports could stop the bearish trend of these last days. Moreover, shares are now in contact with an upward trendline which legitimate our scenario.

Investors can take a long position at current prices. In the first instance, the target price will be the short term resistance at GBp 469.9. In case of breakdown of the GBp 430.8 support at the closing price, investors should close their positions.