Gildemeister’ share price was heavily penalized and is now in an oversold situation near to a solid support area.

From a fundamental viewpoint, the security is cheap with a PER of 10.58x for 2013 and 9.98x for 2014. Besides, EV/Sales is low with a ratio at 0.38x for this year.

Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average, currently at EUR 17.5, shows. Nevertheless, the stock seems in an oversold situation, near to its EUR 14.3 support in daily data. This level might stop the bearish trend in the short term.

So as to make the most of a potential technical rebound of Gildemeister, it seems opportune to take a long position at the current price. A confirmation of this pattern would enable the security to reach the EUR 17.3 resistance. Investors should not insist under EUR 13.25 and are better to place a stop loss order under this threshold.