There are heavy volumes on Carl Zeiss which is trading in a tight price range and is approaching a strong resistance level.

From a fundamental viewpoint, the group offers an interesting value compared to its peers, as it is valued 1.58 times its sales according to Thomson Reuters analysts. Moreover, revenues and benefits are improving and this trend should continue until 2018 and its financial situation should continue to improve with a positive cash position every year.

Since its fall, the stock fluctuates in a trading range between EUR 19.8 and EUR 22.4. The stock has renewed its bullish trend and is now reaching a strong resistance level. The support of the 20-day moving average confirmed that the breakout of this level will be a bullish signal.

Therefore, thanks to its graphical pattern and its strong fundamentals, active investors could take a long position in Carl Zeiss above EUR 22.4. The target price will be EUR 24.5. A stop loss order can be placed under EUR 21.8 in case of failure of the bullish overflow.