J Sainsbury could exceed the symbolic threshold of GBp 400.8 in order to reach new highs.

The valuation levels remain intact with an attractive valuation level (P/E Ratio at 12.38x for 2014 and 11.31x for 2015). The EV/Sales ratio is also good to mentioned with 0.4 for the next two years.

Technically, the stock is moving in an upward trend for many weeks. This movement reflects a buyer enthusiasm confirmed also by the well orientation of the moving averages. The security is going toward GBp 400.8 and would give a strong buying signal if the crossing is confirmed in daily closing.

Therefore, investors will benefit from the signal given by the crossing of the GBp 400.8 resistance to take a long position in the stock. The objective will be set near GBp 430. Once the trade is opened, a stop loss should be fixed under effective entry point to guard against a trend reversal.