Aperam, the Dutch company engaged in metallurgical products, could validate its bullish scenario if prices succeed to breakout the EUR 25 key point.

The company published in early May its financial results for the first quarter 2014, where sales improved 9% over the same period in previous year. The EBITDA of USD 129 million beat analysts’ estimates by more than 20%. According to “Surperformance” ratings the group have strong potential of growth and its valuation still being important. The financial leverage is anticipated to decrease from 2.36x in 2013 to 1.35x by the end of the current fiscal year. Furthermore, EPS revisions for the last 12 months were stable and the consensus among analysts remains buyer.

Technically, the stock is trading in a bullish trend in the short and long term. It exceeded the upper trend line on yesterday session. If the security keeps its current acceleration rhythm then the EUR 25 threshold could be broke, leading prices toward higher levels. Thus, the EUR 27.3 is likely to be aimed at anytime, mainly helped by daily and weekly moving averages orientation that continues to gradually enhance.

Consequently, active investors could take a long position in the case that the EUR 25 threshold broke. Then, they could seek for an objective at EUR 27.3 and EUR 28.7. Otherwise, the stop loss could be placed once the stock fall under the trend line.