Ambarella is trading in a bullish trend and several arguments are in favor of the continuation of this trend.

The economic and financial situation of the company is still strong. Estimated sales from Thomson Reuters consensus are encouraging (around 20% growth each year until 2016).

Technically, the security is in an uptrend on all time scales and it is supported by moving averages. The bullish trend has been stopped around USD 36 but the support level currently tested should give a new impetus to the stock.

Trend remains positive until prices are above the trend-line and the USD 28.8 short term support. This trend should allow the stock to reach its USD 35.6, which will be the first target price.

According to both technical and fundamental elements, it seems opportune to take a long position at the current price. The bullish trend should allow the security to reach the USD 35.6 resistance. If the stock crosses it, a new target price will be set. A stop loss will be placed under the USD 27.