Wincor Nixdorf could breakout the EUR 50.55 resistance in the short term.

The valuation levels remain low with an attractive P/E ratio at 17.5x for 2013 and 13.79x for 2014. Moreover, upside orientation of EPS estimate revision gives some credit on the share.

Technically, prices continue to increase sharply for several month. On all time scales, all indicators are showing good arguments and moving averages are well oriented. The security is now moving toward the mid-term resistance located at EUR 50.5, in a bullish channel, and seems able to breakout soon. This crossing would provide a strong buy signal.

Exceeding the technical line at EUR 50.56 would point to ambitious upward targets. In this case, market participants could buy this stock with an initial target of EUR 53.7. If investors reduce long-side exposure for profit-taking, a bearish trend would happen below EUR 49.4 and so this strategy would be invalidated.