Recordati is a company engaged in the research, development, manufacture, marketing, and sale of pharmaceuticals. The stock tests once more its two year old trend line.

The company has strong fundamentals. For the current year, a higher operating margin is expected for the current year and its earning should rise by almost 11%. With debts decreasing 4% the leverage is intended to be at lower levels. High business predictability on the company allows investors to be confident and good profitability rating gives them one more argument for investing on Recordati.

A bullish trend is observed since 2012 on technical patterns, indeed the progressive rise had replicated most of the time the moving averages orientation. A break through the trend line at EUR 13.3 should take place in the sessions to come and this action would let investors seek for new tops near EUR 14 in first place and further a target price at EUR 15.3.

Considering fundamental and technical analysis, a long position could be taken over EUR 13.3. The main target price is set at EUR 14. A stop-loss order could be placed below the pivot point (EUR 12.7).