The Triumph Group' stock knew a bearish phase after the publication of its earnings for Q1 2014. Results were, indeed, slightly below estimates.

However, the firm still has good fundamentals such as a steady growth, an improving financial situation and a growing profitability. Further, the stock is low valued with a P/E ratio at 12.8x for 2013 compared to 14.1x for the sector.

Technically, prices are in a bullish trend with increasing weekly moving averages. The stock, helped by its bullish trend line and the USD 77 support, recently bounced. Nonetheless, the rebound has been stopped by the 50-day moving average and prices are back on the 100-day moving average. We expect the latter to help the security to get rid of the 50-day one, in order to reach USD 85.

Thus, a long position can be opened at the current price to aim USD 85. A stop loss must be placed below the USD 77 mid-term support.