Finning International Inc. : Breakout of an important resistance level

02/15/2013 | 09:36am Opinion : Bullish above 26.2 CAD Target price : 28 CAD Stop loss: 25.6 CAD

TORONTO STOCK EXCHANGE Business Support / Supplies

The company's fundamentals are still strong. At current price, the company is trading 11.66 times its earnings for 2013 and thus has a significant potential. Estimated sales from Thomson Reuters consensus are encouraging.

Technically, the security has just crossed the USD 26.65 medium term resistance and is supported by an increasing 20-day moving average.This configuration should lead the stock toward the USD 28 resistance.

Investors could take a long position at the current price to target the USD 28 resistance. A stop loss should be placed below the 26.2 support.

Camille Chretien Copyright (c) 2013 4-Traders.com

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