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

The company benefit from strong fundamentals.

Technically, the security fell sharply for several weeks. This fall has lead Supergroup towards the GBp 1220 support area, which could become useful as a stepping stone for a technical rebound. The target of this bullish trend is the GBp 1380 resistance at first. Even though moving averages are still in a bearish trend, the oversold situation could encourage a renewed interest in the stock.

Considering technical and fundamental elements, it seems to be an appropriate timing to immediately open a long trade in Supergroup in order to benefit from the GBp 1220 support area.
A first target price will be the GBp 1380 resistance, ie a potential of 9%. A stop loss order will be placed under the mid-term support currently tested. Only a crossing of the GBp 1380 would validate a bullish trend in order to aim a higher target price.