Cabelas shows relatively strong fundamentals and is coming back to attractive prices.

In the recent months, the group had a low level of debt, only 0.02x (financial leverage) for this year. Moreover, the group has an return on equity of 16.8% for 2013, sign of good ability to generate profit.

Technically, the security is in a negative configuration in the short term Nevertheless, the stock is close to an oversold situation, near to its USD 59.8 support in daily data, also corresponding to the 50-week moving average. This level might stop the bearish trend in the short term.

Therefore, the proximity of the USD 59.8 support is an opportunity to take a long position in Cabelas. The first goal is a return to the USD 62.3 resistance and by extension the USD 66.3. In fact, the security has to cross the USD 62.3 area in order to re-establish a bullish trend in the short term. A stop loss order can be placed under the support currently tested.