Deutsche Telekom AG : The EUR 8.01 support area is tested
Entry price | Target | Stop-loss | Potential |
---|
€8.28 |
€0 |
€7.92 |
-100% |
---|
From a fundamental viewpoint, the security is cheap with a PER of 13.09x for 2013 and 12.39x for 2014.
Besides, EV/Sales is low with a ratio at 1.27x for this year. Moreover, the yield offered to investor is around 7% which is one of the best on the stock exchange.
The technical configuration shows a double bottom on the EUR 8 which gives credit to a rebound towards EUR 8.6 and EUR 9. The first obstacle is the 20-day moving average then the two targets should be reached.
Thanks to the technical pattern and Deutsche Telekom's strong fundamentals, active investors can take a long position above EUR 8. The downside potential is limited and the timing seems perfect to benefit from a technical rebound.
The goals will be fixed at EUR 9.
However, a bearish trend would regain the upper hand if the security crosses EUR 8.
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