The GBp 910 support area, currently tested, might facilitate a technical rebound. The company’s fundamentals could validate this scenario.

The healthcare services provider displays an attractive valuation with a P/E ratio of 14.9x in 2015. Sales as well as earnings are expected to increase and the stock benefit from analysts optimism, their average target price on the value represents a 35% gain potential.

After several weeks of horizontal fluctuations within the mid-term range GBp 910 / GBp 1016, the stock is coming back close to the lower limit of the channel. Moving averages are flat and technical indicators illustrate the oversold situation. The GBp 910 area could cause a positive reaction for the coming trading sessions and allow a technical rebound towards the GBp 958 mid-term resistance and then the mid term target will be the GBp 1016 resistance.

Therefore, the proximity of the GBp 910 support is an opportunity to take a long position in Al Noor Hospitals Group. The first goal is a return in the GBp 958 resistance area. 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.