A title ready to explode: the trading levels to understand the direction for the next movement

In Piazza Affari there is a title ready to explode. The only problem is that by April 2019 it is moving in a very narrow trading range that when broken will give rise to a very strong directional movement. We are talking about Fope.

For the technical sheet on the Fope title click here.

Fope's balance sheet

Short and long-term liabilities: Short-term assets (€ 24.8 million) exceed short-term liabilities (€ 9.4 million) and long-term liabilities (€ 9.6 million).

Level and Debt Reduction: The debt / equity ratio (63.4%) is considered high and the data insufficient to determine if it has decreased over the last 5 years.

Debt hedging: Debt is well covered by operating cash flow (49.2%).

Interest coverage: Interest payments on your debt are well covered by EBIT (44.7x coverage).

Inventory level: the company has a high level of physical or inventory assets.

Debt coverage by activity: Debt is covered by short-term assets (assets are 2.4 times debt).

Fope's growth prospects

One of the strengths of a stock that is ready to explode like Fope is its growth prospects. As can be seen from the figure below, in fact, both profits and turnover are expected to grow at a faster rate than both the reference sector and the Italian market.

Graphic analysis and forecasting

The Fope title (FPE) closed the session on October 31st at € 7.6 in a fall of € 1.3 compared to the previous session.

As can be seen from the figure below on Fope, a weekly time frame, a lateral phase is underway that has been going on since April 2019 and is between € 7.14 and € 7.701. At this point only the break at the end of a week at one of the levels will be able to give direction to the quotations.

Given the long period of laterality the movement that will follow will be very violent and profound. Therefore, carefully monitor the levels indicated above.