The stock should initiate a technical rebound on the GBp 329,7 support.

In the recent months, the earnings estimates for the next year are regularly revised upward by analysts. Moreover, the group is highly profitable, with a Return on equity (ROE) of 20.5% for 2013.

Technically, the security fell sharply for several weeks. This fall has lead The Sage Group towards the GBp 329.7 support area, which could become useful as a stepping stone for a technical rebound. The target of this bullish trend is the GBp 346.7 resistance. Even though moving averages are still in a bearish trend, the oversold situation could encourage a renewed interest in the stock.

So as to make the most of a potential technical rebound of The Sage Group, it seems opportune to take a long position at the current price. A confirmation of this pattern would enable the security to reach the GBp 360.4. Investors should not insist under GBp 329.7 and are better off placing a stop loss order under this threshold.