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.