The technical and fundamental configuration of Howden Joinery argue in favor of a continuation of the bullish trend for a while.

The high rentability of the company (profit margin 2012 of 9.5% versus sector : 7.5%) and the healthy financial situation (96.4 billion pounds in cash in 2012), justify its high valuation (P/E ratio 2013 of 18.16x versus sector : 15.1x).

Technically, the stock is enclosed in a sharp bullish trend since the beginning of 2012, supported by the 20-week moving average. However, prices began a slight bearish phase upon contact with GBp 273.7 and may come back to the GBp 255 support, corresponding to the 20-day moving average. The latter may help the security to bounce towards GBp 273.7, corresponding to a bullish trend line.

As a consequence, it seems opportune to wait a comeback on GBp 255 to take a long position in order to benefit from a resume of the uptrend. The first bullish objective will be GBp 273.7. A stop loss must be set below GBp 255, once the position is opened