Finning International reaches a strategic entry point and has a considerable potential.

The company's fundamentals are strong. Sales estimates by the Thomson Reuters' consensus are encouraging. Furthermore, the PER for 2013 is estimated at 9.92x and at 8.51x for 2014. The company is valued 0.75 times its revenues for this year. The very low valuation of the firm' stock argue in favor of an upward reversal.

Technically, the security is in a consolidation area within the significant CAD 21.8 support and the CAD 26.7 resistance, in weekly data. Above the lower limit, investors could aim a rebound toward the CAD 24.2 resistance area.

As a result, active investors can take immediately a long position in Finning International thanks to the proximity of the CAD 21.8 support area. The target price is CAD 24.2 and in case of breakout of this level, the second target price would be CAD 27.2. If there is a breakdown of the CAD 21.8 support, investors should close their positions.