LEONI could breakout the EUR 55.1 resistance in the short term.

From a fundamental viewpoint, the company is trading at a low level as shown by the ratio “enterprise value/revenue” at 0.52x. The P/E Ratio is moderate (estimated at 11.8x for 2014).

Technically, the share has a bullish configuration on all time scales. Prices are supported by increasing moving averages as shown by the 20-period moving average, in weekly data, and enclose the stock in a dynamic upward trend. The bullish channel clearly identified on the charts, gives the target in the short term (EUR 58).

Taking into account all these elements, investors could buy the stock above EUR 55.1. The target price is set on the upper limit of the bullish channel. A stop loss will be fixed below the entry point, once the trade is opened.