Dürr AG : Acceleration of the uptrend
March 12, 2013 at 05:32 am
By
Entry price | Target | Stop-loss | Potential |
---|
€84.19 |
€0 |
€79.3 |
-100% |
---|
The bullish trend continues and the security Duerr is going towards new historical highs.
The company has strung fundamentals. Firstly, we note that it is undervalued compared to the sector with an EV/Sales ratio estimated at 0.57x by the Thomson Reuters consensus for this year. Moreover, the EPS has been regularly revised upward.
Technically, prices are well oriented on different time scales supported by increasing moving averages. The uptrend will not stop until the stock is above the EUR 80.4 short term support. After breaking out the bullish trend line, the stock has just pulled back on it around EUR 84, level corresponding to the 20-day moving average. This configuration argue in favor for an acceleration in the uptrend towards EUR 94.
According to both technical and fundamental elements, it seems opportune to take a long position at the current price. The bullish movement should allow the stock to reach EUR 94. A stop loss must be placed below the EUR 80.4 short term support to avoid any reversal.
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