Bitauto shares are close to significant technical threshold that should allow it to rally again.

Thomson Reuters estimates show a great growth potential for the company. Furthermore, analysts covering the stock keep upgrading their EPS estimates and target on average USD 93.4, which represents a giant appreciation potential of 56%.

Technically, the security still evolves in a bullish trend in the long term, even though the trend turned bearish in the short term. The stock came back on the USD 56 support and the bullish trendline, thresholds that are likely to allow a significant technical rebound. A double bottom pattern is formed, which reinforces the probability of this bullish scenario.

The timing seems opportune to open a long position on the security in order to target USD 70.4. The stop loss order will be placed under the current support.