Jenoptik could breakout the EUR 10.8 resistance in the short term.

From a fundamental viewpoint, despite a high valuation, analysts polled by Thomson Reuters have regularly revised upward the earning per share estimates for 2014. Consequently, profitability is improving, showing a relatively good financial health of the company.

Technically, prices continue to increase sharply for several month. In the mid and long term, indicators are green and moving averages are well oriented. The security is now moving toward the mid-term resistance located at EUR 10.8 and seems able to breakout soon. This crossing would provide a strong buy signal.

Therefore, investors could take a long position in Jenoptik, on crossing of the EUR 10.8 mid-term resistance. A stop loss should be placed at EUR 9.4.