Delphi, a vehicle components manufacturer specialized in electrical and electronic devices, could extend the rally in the ensuing sessions.

Its Electronic and Safety activity advanced 65% on 2013 and better figures are anticipated for the current fiscal year. Its net margins become greater as time passes, thus earnings should come up to $17.5 billion by the end of 2014, so an increase of 6% over 2013, but foremost, $20.8 billion are expected by 2016. Furthermore, the net income is estimated at $2 billion by 2016. This positive evolution has been reflected in EPS estimates.

Technical patterns are in line with encouraging forecasts of stock prices. They could come over the USD 70.8 resistance in the near term while accelerating the buyer’s pressure on the equity. Additional technical elements favor rising prices and no major indicator counteracts the bullish bias. If prices come over the midterm resistance then likelihood of reaching the USD 77.8 level will mount. In weekly data we observe well oriented moving averages.

For all the reasons above, the timing seems suitable for going long on Delphi. The bullish trend should lead to soaring prices toward UD 77.8, which represents our target in the short run. A stop-loss order under the entry point at USD 68.6 could be wise.