The GBp 170 support area, currently tested, might facilitate a technical rebound. The company’s fundamentals could validate this scenario.

From a fundamental viewpoint, the company seems undervalued relatively to its peers with a EV/Sales of 0.46.
In the recent months, the earnings estimates for the next year are regularly revised upward by analysts.

This situation gives credit to a potential technical rebound. Effectively, the stock is forming a "V-bottom" on the GBp 170 in order to recover a bullish trend in the short term. The 20-day moving average should be broke out in order to validate this scenario.

The trading strategy can benefit from the proximity of the strong support currently tested in order to buy SIG in a good timing. The potential gain is around 10% with the main goal at GBp 189.7. Investors might place a stop loss order at GBp 168.2 in order to avoid important losses.