Ambarella continues its bullish trend in order to test new highest level.

The company’s fundamentals are still strong. Sales are up +30.5% for this year compared to 2013. Analysts from Thomson Reuters consensus have revised largely upward their EPS estimates and expect an increase about 35% between 2014 and 2015.

Technically, the security is in an uptrend on all time scales and it is supported by moving averages. The bullish trend will not be stopped until prices are above the USD 41.46 short term support. Moreover, the stock has recently broke-out its pivot point which should allow a new upward impulsion. This trend is supposed to lead the stock to its USD 53.6/54 short and long term resistance.

Thanks to these good indicators, it seems relevant to take a long position in Ambarella at the current price. The target price is the USD 53.6/54 resistance area. A stop loss will be set under the USD 47.5 pivot point.