Howden Joinery Group could breakout the GBp 296.2 resistance in the short term.

The high levels of valuation show the interest of investors for this security. The group also have a positive treasury, sign of a healthy situation. Moreover, analyst from Thomson Reuters Consensus have revised upward their EPS and revenue estimates for 2013 and 2014.

Technically, prices continue to increase sharply for several month. On all time scales, all indicators are green and moving averages are well oriented. The security is now moving toward the mid-term resistance located at GBp 296.2 and seems able to breakout soon, supported by a bullish triangle. This crossing would provide a strong buy signal.

Given these elements, most active investors could take a buying position above the GBp 296.2 resistance to target the GBp 320, corresponding to the upper level of the triangle. A stop loss is placed below the entry point, threshold that would invalidate the bullish strategy.