LEONI could regain its upward trend after having run out of steam.

The group enjoys upward revisions in earnings per share and growth prospects. Indeed, according to the consensus made by Thomson Reuters, sales are expected to grow for the current fiscal year to EUR 4.1 billion (3.9 billion last year). The company seems undervalued as suggested by its P/E ratio at 12.9 times 2014 earnings estimates.

Graphically, buyers influence has been downsized. As the trend in the short term became bearish, profit taking has lead the stock close to an important support level. A rebound on the EUR 54.85 could launch the stock to its recent highs. Well oriented moving averages support this idea.

In consequence, a long position can be taken close to EUR 54.85 to aim EUR 60. A stop loss will be fixed below the entry point to limit risks.