Sage Group plc : Perfect timing to aim a technical rebound
By Sandra Pinturault
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 335.5 | GBX 0 | GBX 326.6 | -100% |
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.