Cementir is an Italian holding company with subsidiaries manufacturing cement and concrete, principally in Turkey and Denmark. Its share has broken the bullish trend line.

Strong fundamentals support its positive dynamic. A significant push in net margin is anticipated for 2013 for an improvement in net income of almost two times in year over year comparison. In addition, lower debts are estimated for a decrease in financial leverage. Besides, on the last 12 month Thomson-Reuters analyst’s has constantly revised upward the stock EPS (+37% for 2013 and +25% for 2014) and consensus remains 100% buyer.

Cementir is currently at its highs since 2008. Having tested the trend line for multiple times, the stock recently broke through it confirming this way the bull rally to the EUR 6.5 resistance. Moreover, in weekly data, the path exposed by all moving averages should hold this movement on sessions to come. If a successful breakout of the EUR 6.5 resistance takes place, investors will aim for higher targets.

Considering fundamental and technical analysis, a long position could be taken at current prices (near EUR 6). The target price is set at EUR 6.5. A stop-loss order could be placed at EUR 5.7.