Technical patterns as well as solid fundamentals lead us to forecast a rebound.

Entertainment One owns strong fundamentals. Its Surperformance rating underlines its Growth revenue and its nice potential. Entertainment One has large enough profits that enables to generate substantial earnings (its net income increases by 55% in 2015). Moreover, the Reuters Consensus is very optimistic about the stock and displays an average target price of GBp 390, ie a 28% increase.

Recently, the evolution of the equity brought prices close to the midterm support line at GBp 285.30, which acts as a protection wall from the downtrend. This area is expected to annihilate bearish possibilities and thus result in a bullish reversal.
Therefore, investors are called to open long positions on Entertainment One to take advantage of current price levels. A first target price will be set at its GBp 334.6 resistance. A stop loss order will be set at GBp 280 to avoid heavy losses.