SSE' stock came back to an interesting buying point, and may resume its uptrend in the coming trading sessions.

The group is still undervalued and the “enterprise value to sales” ratio shows an attractive valuation of 0.67x for the current year. Further, after a sharp decrease in the 2013 fiscal year, the net margin is expected to improve from 1.5% last year to 3.3% in 2014.

Technically, the uptrend in the medium and long term should protect the stock of a major downtrend. In the short term, a decline could lead the share to the GBp 1550 support, corresponding to the 50-day moving average. Therefore, a technical rebound will fix an objective near to the GBp 1670 short-term resistance.

In this configuration, a decrease seems unavoidable in the GBp 1550 area. Investors could take a buy order on this level and get a good entry point with a stop-loss below the medium term support.