WPP

The advertising giant has seen its share price fall more than 70p since May, having started the year strongly enough to take it up as high as 786p. Growth in online and interactive business and expansion in Asia and the Middle East has helped boost revenues over the past few months and the company has been on an acquisition spree in the run-up to results, due this week. The company has also been buying back shares and although the weakness in the US dollar exchange rate has scared away investors, the shares look set to pick up pace. The technicals look very good with the 705p-710p level acting as support level after being resistance back in 2004, and the stock would also benefit widely from a recovery in the dollar.

ACTION BUY WPP Group • Target 780p • Stop Loss 680p

TIME TARGET 5 WEEKS