The GBp 542 support currently tested could help Northgate to gain ground

From a fundamental viewpoint, Northgate enjoys an excellent Surperformance ratings, which underlines its great business predictability and its profitability (yield for 2015 amounts to 2.64%). The Reuters Consensus is mainly on the “buy” side and has revised upward its EPS revision for the current year.

Technically, the stock has been lately oversold and is trading in a short term bearish trend. But the stock has come closer to its long term support, this is why it constitutes once again a trading opportunity: Northgate should be able to take advantage of a technical rebound on its GBp 549.50 support.

Considering technical and fundamental elements, it seems to be an appropriate timing to take immediately a long position in Northgate plc in order to benefit from the support area. The first target price will be the GBp 577.50 resistance, ie a potential of 5.1%. A stop loss should be set at GBp 520 to avoid important losses.