The upward trend could spur Bodycote in coming sessions.

The group’s fundamentals are strong and its Surperformance ratings highlight its qualities in term of profitability, finances and business predictability. Thus, net margin, at 11.8% last year, offers an interesting level and should progress towards 13.7% by 2016. Moreover, the company has reduced its debt exposure and finished last year with a positive cash position. The analysts’ consensus is largely positive and the stock offers an interesting potential considering their average target price.

Bodycote shows a bullish configuration in the medium and long term. After, a slight consolidation phase, the stock has reintegrated the rising channel. Weekly moving averages are still well-oriented and thus the current pattern shows a trend that remains very progressive. The stock should accelerate towards its recent highs.

Consequently, investors could take a buyer position at the current prices in order to benefit from an interesting entry point. Nonetheless, a stop loss will be placed under the entry point in case of a further degradation.