Huntington Ingalls Industries could reach new tops if the security crosses the USD 83 resistance.

The company’s fundamentals are still strong. Earnings are in a strong uptrend for this year. This high level of profitability should continue in 2014 and 2015. Analysts from Thomson Reuters consensus have revised largely upward their EPS estimates. The EPS revision for 2013 and 2014 is close to 20% on the last 12 month period.

Technically, the security shows a bullish configuration on all time scales. Prices are supported by increasing moving averages. In weekly data, 20-week moving average helps the stock to keep its uptrend. The security is close to cross the resistance at USD 83.

In consequence, investors can take a long position in Huntington Ingalls Industries once the security breaks the USD 83 resistance. Thanks to the swing effect computation, the target will be fixed at USD 89. A stop loss will be set under the entry point.