DEUTZ is trading in a bullish trend and several arguments are in favor of the continuation of this trend.

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.