QinetiQ Group is trading in a bullish trend and several arguments are in favor of the continuation of this trend.

The company shows strong fundamentals. Firstly, the high valuation of the group shows a great investors confidence, because there are willing to pay a high price for the stock. Moreover, the consensus revised upward EPS estimates for this year (and the next one) and that let see a great potential for the security on the stock market.

Technical patterns are in the green: prices are up for several months. The movement should continue in the coming trading sessions thanks to the support of the 20 and 50-day moving averages. In this case, the goal will be fixed around GBp 239.2.

Therefore, taking into account all these elements, it seems opportune to open a long trade at current prices in order to benefit from a possible reversal. The first target price is the GBp 239.2 resistance. A breakout of this level will be a new bullish signal for higher target price. A stop-loss order will be placed under the GBp 229.4 short term support, threshold that would invalidate this trading strategy.