Ocado Group continues its bullish trend and has crossed a strong level (GBp 541).

The fundamentals of the company are improving. The company should start to be profitable by 2014 and investors should come back on the stock to sustain prices. Moreover, the consensus revised upward EPS estimates for this year and that let see a great potential for the security on the stock market.

Technically, the security shows a bullish configuration on all time scales. Prices are supported by increasing moving averages. In weekly data, 20-week moving average helps the stock to keep its uptrend. The strong resistance at GBp 541 has just been crossed and open the way to new tops.

Therefore, taking into account the strong fundamentals and technical patterns, it seems opportune to take a long position at the current price. The first target price is the GBp 600 resistance (computed by swing effect). A breakout of this level will be a new bullish signal for higher target price. A stop loss will be placed under the entry point, threshold that would invalidate this trading strategy.