The EUR 31 support, currently tested, should allow KUKA to rally again.

From a fundamental viewpoint, KUKA is undervalued in terms of enterprise value. Based on the current price, its market capitalization, plus its net debt, represents 0.57 times its revenues. This valuation is only 16.74 and 14.68 times the two next years earnings.

The security follows a downward trend in the short term. In the mid-term, the trend is neutral. The stock is trading within a range between EUR 31 and EUR 33. KUKA is not likely to continue its downtrend because it is near to the strong EUR 31.5 and it is oversold.

Therefore, the proximity of the EUR 31.5 support is an opportunity to take a long position in KUKA. The first goal is a return in the EUR 33 resistance area. In fact, the security has to cross this area in order to re-establish a bullish trend to reach EUR 34.5. A stop loss order can be placed under the support currently tested.