Jenoptik is close to a strong resistance level which should be overcome in the coming sessions.

From a fundamental viewpoint, the company’s qualities are brought to light by its Surperformance ratings. The group offers an interesting profitability, with a net margin of 8%, which should be maintained over the years while sales are expected to progress 17% by 2015 reaching EUR 700 million. In addition, P/E ratio of 13.6 times 2015 estimates show an undervalued company compared to its peers. Finally, the consensus of analysts is largely buyer.

From a technical viewpoint, stock prices evolve in large trading range between EUR 11.42 and EUR 13.40 since November 2013. The recent acceleration has brought the stock close to its resistance level. The crossing of this level will be a strong bullish signal as it had stopped price progression several times.

Therefore, a long position could be taken above EUR 13.40 with a target price at EUR 14.5. Nonetheless a stop loss will be placed under the entry point in case of failure of the bullish overflow.