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

From a fundamental viewpoint, the company is strong. It has a reasonable valuation with an EV/Sales ratio of 0.24x. The Thomson Reuters consensus revised regularly upward EPS estimates of the company for the current year.

Technical patterns are in the green: prices are up for several months. The movement should continue in the coming trading sessions. The 20-day moving average should help to reach the GBp 220.4 long term resistance.

Therefore, taking into account the strong fundamentals and technical patterns, it seems opportune to take a long position above the GBP 181.5 resistance. The main target price will be the GBp 220.4 resistance. A stop loss will be placed under the GBp 175 threshold, that would invalidate this trading strategy.