In the past few sessions, Colruyt shares have suffered from a sharp fall and is now coming back to a significant level support.

According to Surperformance rating, the company is an opportunity for a trading strategy. Indeed, it is a good compromise between its value and its visibility.

Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the EUR 39.05 area should help a rebound towards EUR 40.3. A trend line is one more argument in favor of a reversal movements towards the daily mid-term resistance. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.

So as to make the most of a potential technical rebound of Colruyt, it seems opportune to take a long position at the current price. A confirmation of this pattern would enable the security to reach the EUR 41.78 resistance. Investors should not insist under EUR 39.05 and are better of placing a stop loss order under this threshold.