In the past few sessions American Railcar Industries' share sharply fell but the stock is presently coming back on a significant support level.

The company keeps good fundamentals with attractive profitability and valuation levels. Furthermore, analysts' consensus target USD 65.0, which represent a real gain potential.

Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the USD 54.8 area should stop this trend and allow a technical rebound towards USD 63.5. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.

Thanks to the technical pattern and American Railcar Industries’ strong fundamentals, active investors can take a long position on the current prices. The downside potential is limited and the timing seems perfect to benefit from a technical rebound. The goals will be fixed at USD 63.4 in a first time and then at USD 69.7. However, a bearish trend would regain the upper hand if the security crosses USD 54.8.