AO World shows relatively strong fundamentals and is coming back to attractive prices.

From a fundamental viewpoint, the company has a value in line with the industry as its enterprise value ratios show. P/E ratio are not pertinent due to the very low benefit of the company.

Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the GBp 190 area should stop this trend and allow a technical rebound towards GBp 210. The support has already been tested and has helped for a positive reaction.

So as to make the most of a potential technical rebound of AO World, it seems opportune to open a long position at the current price, near GBp 190. A confirmation of this pattern would enable the security to reach the GBp 210 resistance, with a potential gain of around 10%. Investors should not insist under GBp 190 and are better of placing a stop loss order under this threshold.