In the past few sessions SAP’s share sharply fell but the stock is presently coming back to a significant support level.

From a fundamental viewpoint, the software solutions company remains strong. Thus, sales and margins are expected to grow in the coming years. In facts, revenue should reach EUR 22 billion by 2017, +27% compared to 2013 fiscal year. Moreover, the net margin should finish at 25% at the end of the same period from an already interesting 20% last year. The company also has a sound financial situation and offers an interesting potential considering the average target price from analysts following the company.

Technically, the security is in a negative configuration in the short term as shown by the bearish trend of daily moving averages. Nevertheless, the stock seems being oversold, near to its EUR 54.30 support. This level might stop the short term slumping as it did previously and the share could come back to it recent levels near EUR 59.

Thanks to the technical pattern and SAP’s strong fundamentals, active investors can take a long position at the current price. The downside potential is limited and the timing seems perfect to benefit from a technical rebound. The goal will be fixed at EUR 59, recent highs. However, a bearish trend would regain the upper hand if the security crosses EUR 54.3 under which a stop loss will be placed.