Safeway Inc was heavily penalized and is now in an oversold situation near to the USD 17.2 support.

From a fundamental viewpoint, the company has a low value as shown by the ratio “entreprise value/revenue” of 0.21x. Besides the price earning ratio is moderate (estimated 8.8x in 2012). Despite a weak economic context, analysts have recently revised upward their EPS estimates.

Safeway Inc is in an oversold situation and near to an important level at USD 17.2. This scenario gives credit to a possible technical rebound. Besides, a return on the support would draw a double bottom. A strong bullish impetus could occur later.

For a trading strategy, investors could take advantage of this configuration, to buy Safeway’s shares around USD 17.3. A stop-loss will be fixed at USD 16.8.