EOG Resources just broke out of an important resistance level and should accelerate in the coming sessions.

The company shows strong fundamentals. Firstly, the high valuation of the group shows a great confidence in the stock as investors are ready to pay a higher price to get the EOG’s stock than one of its concurrent. Revenues and profitability are increasing. Sales should rise to USD 20 billion by 2016 while net margin is expected to gradually improve, approaching 19% at the end of the same period. Moreover, the group is supported by upward revisions of both sales and EPS estimations, but also by a strong buyer consensus from analysts following the stock.

From a technical viewpoint, the security is trading in a bullish trend in the short and the long term. The stock recently broke out of an important resistance level. In fact, the USD 105.2 barrier, which has stopped price progression several times, has just been cross. Increasing moving averages on all time scale let think there will be no reversal to the bullish flow in the coming trading sessions.

Therefore, taking into account the strong fundamentals and technical patterns; it seems opportune to take a long position at the current price in order to benefit from the rising trend. The targeted price will be USD 112. Nevertheless, a stop loss will be placed under the entry points in case a consolidation phase gets engaged.