BAE Systems' share price was heavily penalized and is now in an oversold situation near a significant support level.

Financial forecasts are encouraging, indeed, net income should have a 2 digits growth rate in 2015. The share offers a yield over 4%. The consensus average target price is displaying a +17% potential.

Technically, the stock has a bearish trend in the short term but keeps a bullish tendency in the long run. Back on a relevant threshold the share should soon initiate a rebound. Indeed, this area is convergent with the rising lower trend line and the 100-week moving average.

Consequently, investors may open a long position at current prices and target a reversal toward the GBp 480 area. A stop loss order should be set at GBp 449 in case of further correction.