In the past few sessions, RWE shares have suffered from a sharp fall and is now coming back on significant level support.

From a fundamental viewpoint, the security is cheap with a PER of 8.11x for 2012 and 7.97x for 2013. Besides, EV/Sales is low with a ratio at 0.72x 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 31.8, shows. Nevertheless, the stock seems in an oversold situation, near to the 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 RWE, 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 34. Investors should not insist under EUR 30.5 and are better to place a stop loss order under this threshold.