SIG share price was heavily penalized and is now in an oversold situation near to a solid support area.

The company shows solid fundamentals. According to analysts, its EPS should increase to 7.91 PNC in 2014 against -2.50 last year. The turnover is expected to increase as well as the margins. Moreover, UBS and Numis are optimistic on the stock, targeting respectively GBp 205 and 200.

The stock is currently oversold and is trading in a mid-term bearish trend. In the short term, this trend should be reversed after contact with the GBp 144.8 area. SIG should be able to confirm its rebound in further sessions. This support means a trading opportunity in order to anticipate a technical rebound toward GBp 156 and by extension toward GBp 167.3.

Considering technical and fundamental elements, it seems to be an appropriate timing to take immediately a long position in SIG security in order to benefit from the GBp 144.8 support area. A first target price will be the GBp 156 resistance, a potential gain of 4.6%. Only a crossing of GBp 156 would validate a bullish trend in order to aim a higher target price around GBp 167.3. A stop loss order will be placed under the GBp 144.8 mid-term support currently tested.