Allianz' stock could in the short term exceed the resistance of EUR 118.

Fundamentally, the company is low-valued as shown by the "enterprise value/sales" ratio estimated at 0.58x for 2013. The P/E ratio is meanwhile at 9.22x. Moreover, analysts constituting the Thomson-Reuters consensus have recently revised upwards their forecasts for earnings per share. Therefore, it reflects an expected improvement in profitability and also shows the financial health of the Allianz Group.

From a technical point of view, the security moves in an upward trend both in the short term and on longer time scales. The well orientation of moving averages in weekly data does not hint a reversal in the coming sessions. This growth is expected to soon join the resistance of EUR 122.

Various elements exposed enable investors to benefit from the upward trend to take a long position in Allianz, above the EUR 118 resistance. The first target will be set at EUR 122 and by extension new bullish targets can be achieved. A return to the EUR 116 (50-day moving average) would invalidate our recovery scenario and trigger our stop loss.