Deutz possess solid fundamentals. The shares got oversold bringing prices to attractive levels.

As higher sales are anticipated for this year, net incomes should rise by more than 50%. The progression in net and operating margins would argue for better returns as its EBITDA comes to EUR 169 million. Analysts agree on the ability of the company to deliver stronger returns to shareholders, €0.47 per share concerning the ongoing fiscal year and €0.58 for the next year.

As confirmed by last trading session buyer bias and foremost the oversold situation, the stock could be ready for a brilliant recovery. This movement should shape a bullish wave from the support line to the pivot point. Moving averages remain flat calling for price to meet them close to the midterm resistance. The EUR 6.05 area could have a positive influence on the equity and a technical rebound towards the EUR 7 pivot has strong chances to take place.

It seems opportune for long position taking at current prices having as first target the EUR 6.6 level. In a second stage, if this pattern continues, the security could reach the EUR 7 resistance, which means a potential gain of 14.4%. The stop loss will be, however, fixed at EUR 5.8.