The German provider for technological solutions principally for the e-commerce sector should come back to its EUR 39 resistance in the short term.

Financials regarding Cancom are highly encouraging as a considerably progression is expected not only in terms of margins that should come to 3% against 2.4% in 2013, and sales that could increase of 22% for this year, but also in earnings per share. In fact, analysts polled by Thomson-Reuters reported anticipations of $1.53 per share and even higher estimates have been released for 2015 where by this time they look ahead to $2.08 per share.

Technical patterns show how the equity has been fluctuating inside a rising wedge since the beginning of 2013. If prices rise over EUR 35.2, which match to the short term resistance level, then a rally could take place in order to swiftly drive prices toward the EUR 39 point; this is our strategy’s target. This upper threshold corresponds to the midterm resistance. In the worst-case scenario, prices would test the lower bound of the rising wedge before climbing, thus the stop would be placed under the EUR 33.5 in order to limit risks.