Leoni emerges from a horizontal consolidation phase and could test new high levels.

The German group of electrical components continues to gather good Surperformance ratings. Those ratings highlight the strengths of the company with valuation levels that makes it still attractive. Certainly, the analysts’ EPS revisions are a bit flat but they kept a positive momentum over the year. Finally, the quality of publications also gives a real interest on Leoni to investors.

Technically, the recent graphical revival enabled the stock to reach the EUR 61 area. A bearish movement, when touching the 20 days moving average located so far at EUR 58 could be an opportunity. Therefore, in case of a pull back, a purchase can be set up at EUR 58.5 to aim for a bullish renewal towards EUR 61 and then EUR 65. Nevertheless, once initiated, the position must be protected by a stop under EUR 57, indicating a weakening of the graphical configuration.