The German reinsurer' stock should resume its uptrend after knowing a slight consolidation.

The company shows encouraging sales estimates for the coming years. Analysts from the Thomson Reuters consensus regularly revised upwards their EPS estimates. Eventually, the valuation of the security is quite low with a P/E ratio of 8.35x and a "enterprise value/sales" ratio of 0.62x for 2013.

From a technical viewpoint, the trend is bullish in the long run. However, after the trend ran out of steam, the 20-week moving average, which has supported the stock for more than a year, leaves room for its 50-period counterpart. The latter, helped by a bullish trend line, is able to allow the stock to resume its bullish trend towards EUR 60. Prices have broken out the 20-day moving average with important volumes, showing the strength of the ongoing rebound.

The technical configuration and strong fundamentals of Hannover Rueckversicherungs group justify a long position at the current price. A comeback to the EUR 60 resistance is aimed, then EUR 64 by extension. A stop-loss must be placed below the 20-day moving average.