The USD 52.15 support, which has been tested, should allow Tenneco to goes up again.

The Tenneco turnover is expected to raise sharply for the next 2 years and the EPS is also expected to raise by 45% from $2.97 to $4.33 in 2014. The company has a price earning ratio equal to 13.1 which is a bit lower than the industry average (16.7). This lower P/E represent a good opportunity as much as the company is cheaper than its competitors.

Technically, in daily data, even if moving averages are still in a downtrend, the positive reaction in the USD 52.15 area should stop the previous bearish trend and allow a technical rebound towards USD 58. In daily data, a pattern (morning star) shows a recovery of the bullish condition.
Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.

The trading strategy can benefit from the proximity of the strong support currently tested in order to buy Tenneco in a good timing. The potential gain is 8.3%. Investors might placed a stop loss order at USD 50.6 in order to avoid important losses.