The Berkeley Group continues its bullish trend in order to test new highest level.

The company shows strong fundamentals. Firstly, the valuation of the company is quite low with a PER of 13.73x in 2013 and 11.93x in 2014. Moreover, the consensus revised upward EPS estimates for this year and that let see a great potential for the security on the stock market. Finally, sales are expected to grow by more than 25% this year.

From a technical viewpoint, the security is trading in a bullish trend in the short and the long term. Increasing moving averages let think there will be no reversal in the coming trading sessions. After breaking out its bullish trend line, the stock is forming a pull back on it around the GBp 1940 level, which is corresponding to the 20-day moving average. This configuration is a sign of acceleration of the bullish trend and prices should use this level as a stepping stone to bounce towards the GBp 2093 short term resistance.

In consequence, investors can take a long position in The Berkeley Group with a first target price at GBp 2093. A new bullish fluctuation could lead the security toward its highest level in case of breakout of this resistance. A stop loss will be fixed under the short term support at GBp 1940.