DEUTZ AG : The bullish trend continues
By Sandra Pinturault
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
€6.94 | €7.5 | €6.78 | +8.07% |
The company’s fundamentals are still strong. The valuation level is low with a EV/Sales ratio of 0.63x for 2013. Moreover, analysts from Thomson Reuters consensus have recently largely upward their EPS estimates.
Technical patterns are in the green: prices are up for several months. The movement should continue in the coming trading sessions supported by the 20-day moving average. All these indicators should help the price to cross the EUR 6.94 resistance.
According to both technical and fundamental elements, it seems opportune to take a long position above the EUR 6.94 resistance. The target price is 7.5 EUR, corresponding to the bullish trend line. A stop loss will be placed under the entry point to avoid a downtrend.