New Oriental Education & Tech continues its bullish rally to test new highs.

From a fundamental viewpoint, the group is in a good financial situation. Sales have increased by + 24.8% on the current year, with a net margin of 17.2%. Analysts widely revised upward in recent times their earnings per share estimates, which is a reliable indicator reflecting the company's health.

The security is in an upward trend for several months. A running out of steam is occurred with the contact of USD 22.6. This movement is supported by the 20-day moving average and may stop any bearish inclinations. Exceeding the USD 22.6 resistance will indicate a buy signal with a target price in the area of USD 24.9.

Given these elements, most active investors could take a buying position and aim to cross the USD 22.6 resistance for a new bullish signal. A stop loss is placed below the USD 21.67 pivot point, threshold that would invalidate the bullish strategy.