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

Fundamentally, the company is highly profitable with a ROE (return on equity) of 62.3% for 2013. The company also benefit from a positive treasury, sign of a healthy financial situation. Moreover the earnings estimates for 2013 and 2014 are regularly revised upward by analysts from the Thomson Reuters consensus.

From a technical viewpoint, the security is trading in a bullish trend in the short and the long term. Increasing moving averages let think there will be no reversal in the coming trading sessions. This growth should help to cross soon the GBp 793.5 mid term resistance.

According to both technical and fundamental elements, it seems opportune to take a long position above the GBp 793.5 mid term resistance. The bullish trend should allow the security to reach the GBp 860, corresponding to the bullish trend line. A stop loss will be placed under the entry point.