Muenchener Rueckversicherungs is close to an area that might stop the downward trend.

From a fundamental viewpoint, the security has a low valuation with an EV/Sales ratio of 0.57x. To date, PER for 2013 is estimated at 8.42. Moreover, analyst which follow the stock, estimated the average target price at EUR 152, this represent a potential increase of 9.6%, compared to the current price.

The area of the EUR 137.2 support should enable the stock to have a new bullish trend. The long term support in this area confirms its relevance. Technically, above these levels, 4-traders analysts are optimistic and count on a return towards the short and mid-term resistances.

Investors can take a long position at the current price. In first instance, the target price will be the resistance at EUR 145.1. In case of breakdown of the EUR 137.2 support at the closing price, investors should close their positions.