Dialog Semiconductor continues its bullish rally with a recent acceleration.

The German company has strong fundamentals despite very generous valuation levels, signaling a good visibility on the activities. In addition, the Thomson Reuters consensus revised upward, on many occasions, the earnings per share forecast for the current year, fueling the upward trend.

Technically, prices are anchored in an overall positive trend for several months. Moving averages, on all time scales, underline the good orientation of the stock and could then serve as arguments to initiate a purchase in case of a pullback near the EUR 19.5.

Considering all these good indicators, it seems appropriate to purchase the stock around EUR 19.50, thanks to another pullback on the upward trendline, aiming for a new bullish breakthrough towards EUR 21/21.50. Nevertheless, a stop-loss will be placed under the medium-term support at EUR 18.3, whose breaking will deteriorate the technical configuration.