Carillion plc : In oversold situation
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 254.3 | GBX 0 | GBX 248.9 | -100% |
Besides, EV/Sales is low with a ratio at 0.29x for this year.
Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the GBp 250 area should stop this trend and allow a technical rebound towards GBp 268.2, firstly. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.
Therefore, the proximity of the GBp 250 support is an opportunity to take a long position in Carillion. The first goal is a return in the GBp 268.2 resistance area, that is a potential of approximately 5%. 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.