Despite a sales release for the first semester of this year, published on April 2, showing an increase in sales of 3%, the Carl Zeiss Meditec company has seen its share collapse by almost 18% in few trading sessions. The security is, now, back on a major support level.

Sales estimates from the Thomson Reuters' consensus as well as margin expectations are encouraging. Moreover, the company is financially healthy and has a treasury of 104 million euros, expected to rise to 275 million at the end of the current year.

Technically, after sharply drop from the USD 25 resistance, prices are back on the EUR 21.1 major support level, corresponding to the 50-week moving average. This threshold is an opportune buying point to benefit from the medium and long term trend and aim a comeback towards the EUR 23.1 short term resistance.

In consequence, investors could take a long position at the current price. The objective will be EUR 21.1. The breakout of this level would confirm the resume of the bullish trend and would argue in favor of a comeback towards EUR 25. A stop loss must be placed below the EUR 21.1 short term support, the breakdown of that level could lead to a downtrend.