Mellanox Technologies could reach its USD 51.6 resistance.

The company’s fundamentals are still strong. Sales are expect to progress by more than 35% this year. Moreover, analysts from Thomson Reuters consensus have revised largely upward their EPS and revenues estimates.

Technically, the security shows a bullish configuration on all time scales. Prices are supported by increasing moving averages. In weekly data, 20-period moving average helps the stock to keep its uptrend. In daily data, the bullish trend should resume thanks to the USD 49.55 support.

According to both technical and fundamental elements, it seems opportune to open a long position at the current price. The bullish trend should allow the security to reach the USD 51.6 resistance. If the stock crosses it, a new target price will be set. A stop loss will be placed under the USD 49.55 short term support to avoid a downtrend.