The stock is trading near important levels and could see a bullish momentum.

Fundamentals are solid. The growth represents a catalyst for further rises in prices. Indeed, expectations for coming years show an increase in revenues and earnings. In addition, analysts revised upwards their forecasts on EPS and Sales over the last 4 months. EPS should reach GBp 10.5 in 2014 compared to GBp 7.3 last year. The financial situation is healthy, with finances that should increase during the upcoming years. Valuation levels are still attractive, with a P/E ratio at 10.3 times 2014 estimates and 7.65 for 2015 ones.

From a technical viewpoint, Taylor Wimpey's shares remain close to an important support area (GBp 106.9). The latter brings an additional argument for a bullish rebound in prices, especially since the equity is still having strong fundamentals. The fall registered on recent sessions represents a key entry point with a target at GBp 117.

Therefore, a buyer position could be taken over the short-term support at GBp 106.9. The main target will be set at GBp 117. The stop-loss could be triggered once the support is broken.