Inchcape shows relatively strong fundamentals and is coming back to attractive prices.

According to Surperformance© ratings, the company constitutes an opportunity for a trading strategy. Indeed, it usually posts better-than-expected financial statements as in 2013 and the enterprise valuation conciliates with its visibility.

Currently the stock is oversold and, in the mid-term, is trading in a bearish trend. In the short term, this should be reversed upon contact with the GBp 693.5 area and the bullish trendline. Inchcape should be able to confirm its increase in the next trading sessions. This support is a trading opportunity in order to anticipate a technical rebound towards GBp 750 and by extension towards GBp 773.5.

So as to make the most of a potential technical rebound of Inchcape, it seems opportune to open a long position at current prices. A confirmation of this pattern would enable the security to reach the first resistance at GBp 750. Investors should not insist under GBp 693.5 and are better of placing a stop loss order under this threshold (GBp 682).