The Restaurant Group could breakout the GBp 391 resistance in the short term.
From a fundamental viewpoint, despite a high valuation, analysts polled by Thomson Reuters have regularly revised upward the earning per share estimates. Consequently, profitability is improving, showing a relatively good financial health of the company.
Since several months, the stock has initiated a sharp bullish trend mainly due to strong fundamentals. The move could be continued, supported by the 20-day moving average, and return to its highest price levels.
Investors could take a buy position once prices will be above the resistance. A stop loss will be placed under GBp 379.3.