NORMA Group could breakout the EUR 29.5 resistance in the short term.

Regarding the fundamentals, we note the Return on equity of 20.2% for 2013, which highlights the good capacity of the group to generate profit. In addition, forecasts in earnings per share and revenues were recently revised upwards by analysts of Thomson Reuters consensus.

Technically, prices continue to increase sharply for several months. On all time scales, all indicators are green and moving averages are well oriented. The security is now moving toward the mid-term resistance located at EUR 29.5 and seems able to breakout soon, supported by the 50-weeks moving average. This crossing would provide a strong buy signal.

Therefore, investors will benefit from the signal given by the crossing of the EUR 29.5 resistance to take a long position in the stock. The objective will be set near EUR 32. Once the position is opened, a stop loss should be fixed under effective entry point to guard against a trend reversal.