After reaching its historical high at EUR 64.47 at mid-mars, the Hannover Ruerckversicherung' stock ran out of steam and is now on an interesting entry point.

The company has strong fundamentals. Indeed, the valuation of the company is low as shown by a PER of 8.84x and a "Enterprise Value/Sales" ratio of 0.61x for 2013. Furthermore, analysts from Thomson Reuters has largely revised upward their EPS estimates for this year.

From a technical point of view, the trend is bullish in the mid and long term supported by well oriented weekly moving averages. Prices are now near to the lower limit of a bullish channel corresponding now to the 100-day moving average, around EUR 59. This level is an opportune entry point to aim a comeback towards EUR 64.3.

Hence, it seems profitable to take a long position in Hannover Rueckversicherung at the current price. The first bullish target is the EUR 64.3 resistance. Once this level crossed, the security may continue to reach new historical records. Nonetheless, a stop loss must be placed below the EUR 57.4 support in order to avoid any downward reversal.