John Wood Group PLC : The bullish trend should be back
By Bastien Chabasseuil
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 668.5 | GBX 0 | GBX 637 | -100% |
From a fundamental viewpoint, the security is cheap with a P/E ratio of 12.92x for 2013 and 12.25x for 2014.
Technically, prices are confirming a rebound and are crossing the 20-day moving average. This configuration gives credit to a continuation of the rebound. The stock should come back to GBp 722.5.
Therefore, the proximity of the GBp 643.5 support is an opportunity to take a long position in John Wood Group. The first goal is a return in the GBp 722.5 resistance area, that is a potential of 8%. The security has to cross this area in order to re-establish a bullish trend in the short term. A stop loss order can be placed below GBp 640.