Technical patterns as well as solid fundamentals lead us to forecast a rebound.

Regarding financials, the company seems solid. First, it benefits from a significant growth highlighted by Thomson-Reuters analysts' forecasts. Second, it has large enough profits that enable to generate substantial earnings. Sales and EPS revision show analysts' confidence since upward revisions were made over the last 4 months. Moreover, the group recently published strong 2014 Q2 financial results. In facts, revenues are up by 45% compared to 2013 Q2 and EPS has more than doubled over the same period.

Technically, the last consolidation phase has brought the stock to a significant support area. In facts, this level also corresponds to the 100-day moving average which militates for a rebound towards EUR 22.5 and by extension EUR 23.6.

Therefore, investors are called to open long positions on Dialog Semiconductor to take advantage of current price levels. The main target will be the EUR 22.5 and then EUR 23.6 with a stop loss under the entry level to shun bearish flows.