Despite a loss of nearly 50% in 2015, the share RWE, one of the 1st European energy groups, has interesting features. The accumulation phase and the volume in the last trading sessions should create an acceleration movement.

The attractive valuation of the company is a real advantage for the share. The latter is currently valued 0.4 times its sales for 2015 with a P/E ratio of 3.58x for the same period. Net earnings per share are expected in a strong growth in fiscal year 2015 to 3.19 EUR (+ 13%). Thomson Reuters consensus also expects an average target price of EUR 13.1.

Rooted in a long-term downward trend, RWE stock has nevertheless rebounded in recent months in contact with the EUR 10.2 short-term support. This recovery has create an accumulation phase between EUR 10.28/12.7. Consequently, volatility fell sharply but the volumes detected in recent sessions provide arguments for a rise of the stock.

Therefore, the more aggressive buyer will open a long position, given the graphical configuration and solid fundamentals. A breakout of the triangle pattern would give a buy signal with the EUR 12.7 resistance as a target.
A stop loss will be positioned below the EUR 11 (trendline).