The chemical producer could soon resume its bullish trend.

The company has strong fundamentals and qualitative Superformance ratings. Sales are increasing, +13% in 2013, and are expected to keep growing with a 16% progression for 2014. The financial situation is improving with a debt reduction, while EBITDA has significantly improved leading to a lower leverage. Moreover, EPS have been largely revised upward with 2014 EPS expected at CAD 5.14 from CAD 3.41 this year, +50%, proving the profitability of the company. Finally, P/E ratio of 12.8 for 2014 shows interesting valuation levels and the stock price potential.

From a technical viewpoint, the share is in a strong bullish trend since late 2012, but a recent consolidation phase has brought back the stock near an interesting entry level. Moving averages orientation on every time scale supports the resuming of this bullish momentum.

Taking into account both fundamentals and technical configuration, Active investors could take a long position at the current prices. The target will be the CAD 79 resistance. A stop loss will be place under the entry points warning of a more important consolidation phase.