Kier Group is back to a support area and may achieve a technical rebound.

According to Surperformance© ratings, the British property and construction group constitutes an opportunity for a trading strategy. It usually posts better-than-expected financial statements as in 2013 and the enterprise valuation conciliates with its visibility. Indeed, the recent news are positive. Kier Property and Investec partner for a GBP 75m equity joint venture to purchase and fund the ‘Reading Gateway’ site.

Technically, the security fell sharply for several weeks. This fall has lead Kier Group towards the GBp 1492 support area, which could become useful as a stepping stone for a technical rebound. The target of this bullish trend is the GBp 1610 resistance. Even though moving averages are still in a bearish trend, the oversold situation could encourage a renewed interest in Kier Group.

The trading strategy can benefit from the proximity of the strong support currently tested in order to buy the security in a good timing. The first target will be the GBp 1611. However, investors are advised to place a stop loss order around GBp 1469 in order to avoid important losses.