Shares in the Belgian manufacturer of products for the health sector could reinforce its bullish trend after testing the short term support line.

The equity keeps high quality “Surperformance” ratings for both trading strategies and long term investment opportunities. A positive progression in net margins is awaited on a 4-year horizon. Sales of the company are estimated to increase by 31% by the end of the current fiscal year, so €508 million for 2014 while €386 million registered in prior year. Its fair valuation with a P/E ratio of 19.3 times remains an attractive element for investors interested in position taking. A positive evolution in EPS revisions is showed since May 2013.

The stock is looking to extend its long term bullish trend after the test of the €36.7 support while forming a head and shoulders top. As daily and weekly moving averages remain well oriented, prices are more likely to upturn than follow the current falling course. Indeed, a pullback could be shaped at anytime, thus investors could benefit from this pattern in order to open positions at the lowest possible level and increase the potential of gain.

Active investors could take a long position close to the €36.7 support. Then, they could seek for an objective at €39.3. Otherwise, a stop loss could be placed at €35.4.