The company shows strong fundamentals. Firstly, the high valuation of the group shows a great investors confidence in it because there are ready to pay a high price for the stock. According to the Thomson Reuters consensus, the average target price is set at USD 36.3.
Technically, the security is in an uptrend on all time scales and it is supported by moving averages. The bullish trend will not be stopped until prices are above the USD 29.8 short term support. This trend should allow the stock to reach its USD 35 long term resistance, which will be the first target price.
We anticipate a comeback to the USD 29.8 support. Consequently, it seems relevant to take a long position in CONN'S, Inc. around this short term support. The target price is the USD 35 resistance. A stop loss will be fixed under the USD 29.8 short term support because a breakdown of this level would damage technical pattern.
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