Cancom SE : The bullish trend is not over
Entry price | Target | Stop-loss | Potential |
---|
€28.7 |
€30.6 |
€27.9 |
+6.62% |
---|
Cancom is trading in a bullish trend and several arguments are in favor of the continuation of this trend.
From a fundamental viewpoint, the company is strong. It has a reasonable valuation with an EV/Sales ratio of 0.78x. The Thomson Reuters consensus revised regularly upward EPS estimates of the company for 2014.
Technically, the security is in an uptrend on all time scales and it is supported by moving averages. The bullish trend will not be stopped until prices are above the EUR 26.41 short term support. This trend should allow the stock to reach its EUR 30.6 mid-term resistance, which will be the first target price.
Therefore, taking into account the strong fundamentals and technical patterns, it seems opportune to take a long position at the breakout of the EUR 28.7 resistance. The first target price is the EUR 30.6 resistance. A crossing of this level will be a new bullish signal for higher target price. A stop loss will be placed under the EUR 28.7.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.