The USD 63.05 support, currently tested, should allow Outerwall to rally again.

Regarding financials, the coin machines distributor do significant improvements. Its worldwide operations grew 13% in 2013 and the positive trend should continue at least until 2016. In addition, with a P/E ratio standing for 10 times estimated benefits, the company represents a precious asset for investors willing to acquire shares.

The stock is currently oversold and is trading in a mid-term bearish trend. In the short term, this movement could be reversed after testing the USD 63 area. Outerwall should be able to confirm its rebound in further sessions as it enters the oversold territory, event that may lure buyers interested in benefiting from lower entry levels. The USD 63 support means a trading opportunity as anticipates a technical rebound toward USD 68 and by extension toward USD 73.3.

The technical situation call buyers to open positions close to USD 63 seeking for an upside potential at USD 68, which represents a performance of 6% over the spot price. However, the investment strategy will require a stop loss below USD 63.

At the publication date of the analysis, Surperformance© company current editor of 4-traders.com holds a long position on Outerwall (230 shares at $70.87 at June 6th, 2014).