Trinity Industries’ share is still well-oriented.

From a fundamental viewpoint, the company is strong. Perspectives on the activities are good as the Thomson Reuters consensus keeps revising upward both sales and EPS estimates. The great business predictability emphasizes the quality of this investment in the mid-term. Moreover, the company seems undervalued as suggested by its P/E close to 10 times 2014 and 2015 estimates.

Technically, the security shows a remarkable bullish configuration. Prices are supported by increasing moving averages. The recent consolidation phase is bringing the stock back to interesting prices. In fact, the proximity of the USD 41.7 and the USD 40 support levels militate for opening long position. The presence of the USD 40 midterm support which is also the 100-day moving average confirms this scenario.

In consequence, investors should watch closely the behavior of Trinity's stock price in this area in order to optimize their entry point. The target will then be USD 45.7 with a stop loss placed under USD 40.