Safilo Group, an Italian company specialized in manufacturing and distributing eyewear products for over 75 years, pursues its rally after reporting quarterly earnings acclaimed by investors.

The economic and financial situation of the company is still strong. For the first quarter of 2013, sales of the company increased by 3% at EUR 297 million and net earnings rose by 12% at EUR 13.4 million. Safilo reduced its net indebtedness by 10.5% at EUR 220 million. Thomson Reuters analysts largely revised upward earnings estimates. Last earning per share was EUR 0.43 and is estimated at EUR 0.54 for the year 2013.

Technical patterns are in the green: prices are up for several months. The stock recently broke out a bullish trend line and the well orientation of moving averages should help to reach in the coming trading sessions EUR 15.8 then the EUR 16.29 long term resistance.

Therefore, taking into account the strong fundamentals and technical patterns, it seems opportune to take a long position in Safilo Group on crossing of the EUR 12.90 resistance. The first target price is the EUR 15.80 resistance and a breakout of this level will be a new bullish signal for higher target price. A stop loss will be fixed under the EUR 11.4 short term support, threshold that would invalidate this trading strategy.