The British groceries giant could regain its upward trend after dramatically breaking the positive trend line down.

The group benefits from solid financial statements. All its indicators made proof of an extraordinary growth and well oriented charts. With wholesales and operations uniquely in the UK, the group estimates an increase of 17% in gross sales bolstering its EBITDA to about £141 million this year while only £113 million registered in prior year. This rise in earnings is meant to be drifted on a two-year horizon. According to analysts polled by Thomson Reuters, better EPS are awaited by the end of the current fiscal year, near £0.06 per share for 2014 and 2015.

Technical patterns show a stock that falls and recently got in oversold situation. This issue represents a key entry point for investors desiring to take long position on Booker shares. Lowered prices allow them to make better performance on this type of strategy. Besides it, if we take a look on weekly data, the 50-week moving average should support prices and return them toward higher levels, thus recreating a bullish reversal and leading the equity close to the GBp 160 resistance.

Investors could take advantage of current prices for buying Booker for a target primarily set at GBp 152.8, and by extension GBp 2180. The stop loss will be triggered below the GBp 144.5 weekly support at GBp 141.2.