Bunzl plc : We could expect a bullish reaction

12/31/2012 | 04:06am Opinion : Bullish above 990 GBp Target price : 1043 GBp Potential: 3.37% Stop loss: 963.5 GBp

LONDON STOCK EXCHANGE Diversified Trading / Distributing

Bunzl shows relatively strong fundamentals and is coming back to attractive price.

After several weeks of horizontal fluctuations within the mid-term range GBp 990/1074, the stock is coming back close to the lower limit of the range. Moving averages are flat and technical indicators illustrate the oversold situation. The GBp 990 area could cause a positive reaction for the coming trading sessions and allow a technical rebound towards the GBp 1045 mid-term resistance and then the long-term target price is GBp 1075.

The trading strategy can benefit from the proximity of the strong support currently tested in order to buy Bunzl in a good timing. Investors might placed a stop loss order at GBp 960.3 in order to avoid important losses.

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