Howden Joinery Group security has reached its highest price and should rally more.

The company’s fundamentals are still strong. Sales are expected to be up +12.7% this year, and net income +35%. Analysts from Thomson Reuters consensus have revised largely upward their EPS estimates. The last EPS was at GBp 15.5 and is now estimated at GBp 21. Furthermore, UBS and Goldman Sachs have recently raised their target prices, respectively at GBp 503 and 455.

Technical patterns are in the green: prices are up for several months. The stock evolves in a bullish trend on all time scales. Prices have recently crossed their pivot point at GBp 385.4, reaching their highest levels. The movement should continue in the coming trading sessions. The 20-day moving average should help to reach the GBp 426.71 long term resistance on weekly data.

Therefore, taking into account the strong fundamentals and technical patterns, it seems opportune to take a long position at the current price in order to benefit from this bullish scenario. The first target price is the GBp 426.7 resistance. A breakout of this level will be a new bullish signal for higher target price toward the 434.7 resistance on daily data. A stop loss will be placed under the GBp 385.4 pivot point, to avoid a possible trend reversal.