Tenneco is still well oriented and is going to new highs.

From a fundamental viewpoint, the group is in a good financial situation. Firstly it has a low valuation with a EV/Sales of 0.49x for 2013 and a P/E ratio of 13.6x. Moreover, analysts estimate the average target price at USD 54.8, which represent a growth potential of 9.6%.

Graphically, the security is up 38% since the beginning of the year. It seems able to continue this uptrend supported by moving averages and will soon test the USD 50.3 mid-term resistance. We anticipate a crossing of this level, given the upward orientation of the stock in the medium and long term. Above USD 50.35, a buy signal will be given.

Investors could take a buying position once prices will be above the resistance to target the USD 54.8, corresponding to the bullish trend line. A stop loss will be positioned under USD 48.9.