PZ Cussons plc : Perfect timing to aim a technical rebound

08/20/2012 | 03:27am Opinion : Bullish above 302.4 GBp Target price : 316.2 GBp Stop loss: 299.7 GBp

LONDON STOCK EXCHANGE Personal Products

PZ Cussons, manufacturer of personal healthcare products, shows relatively strong fundamentals and is coming back to attractive price.

However, analysts have revised slightly downward their earnings forecasts. With an EPS estimated at 15.96 cts GBP for this year and 17.83 cts GBP for the next year, PZ Cussons is currently paid 19 and 17.01 times the results.

The security follows a downward trend in the short term, under the GBp 316.2 resistance area. The stock is trading within a range between GBp 302.4 and GBp 316.2. The security is not likely to continue its downtrend because it is near to the strong GBp 302.4 and it is in oversold situation.

Therefore, the proximity of the GBp 302.4 support is an opportunity to take a long position in PZ Cussons. The first goal is a return in the GBp 316.2 resistance area, that is a potential of 4.3 %. In fact, the security has to cross this area in order to re-establish a bullish trend in the short term. A stop loss order can be placed under the support currently tested.

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