ManpowerGroup is currently testing its historical highs.

The company shows strong fundamentals. Firstly, the security is undervalued compared to its peers with an EV/Sales ratio estimated at 0.33 by the Thomson Reuters consensus for this fiscal year. Moreover, the consensus revised upward EPS estimates for this year over the 12 last months.

Technical patterns are in the green and prices are up for several months. The movement should continue in the coming trading sessions. The 20-day moving average should help to reach USD 91 and then the USD 94.6 long term resistance.

Therefore, taking into account the strong fundamentals and technical patterns, it seems opportune to take a long position above USD 86.65 in order to benefit from a possible reversal. The first target price is the USD 91 resistance and then then USD 94.6. A stop loss will be placed below the USD 85, threshold that would invalidate this trading strategy.