The security of the semi-conductor manufacturer, Elmos, is well oriented to break out its next resistance.

After many downward revisions, EPS estimates for 2013 are now flat and are turning up for 2014, which shows an improving confidence from analysts following the stock. Further, the security is still undervalued with a P/E ratio estimated for 2013 at 16.5x compared to 26x for the sector. Eventually, the company has an healthy financial situation with a treasury of 39.3 million euros at the end of 2012.

Technically, the bullish trend, started at the end of 2012, is being confirmed, with the 50 and 100-week moving average which are turning up. This dynamic could, soon, be definitely validated, in case of a breakout of the EUR 9 resistance, and allow the stock to reach EUR 9.8, corresponding to the highest of 2012.

Thus, a long position can be opened on crossing the EUR 9 resistance, confirmed in daily closing price. The target is EUR 9.8 then EUR 10.2. A stop loss must be placed below EUR 9.