Molina Healthcare could breakout the USD 38.65 resistance in the short term.

The fundamental qualities of the group are clearly attractive as evidenced by the recent upward revisions of earnings per share and revenue estimations. The profitability of the company's business remains good. The valuation levels remain intact with an attractive valuation level (EV/Sales ratio at 0.11x for 2013 and 0.04x for 2014).

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 USD 38.7 and would give a strong buying signal if the crossing is confirmed in daily closing.

Taking into account all these elements, investors could buy the stock above USD 38.7, confirmed in daily closing price. The target price is set at USD 41.5. A stop loss will be fixed below the effective entry point.