Potlatch Corporation is trading in a bullish trend and several arguments argue for the continuation of this trend.

The company’s fundamentals are still strong. Sales have enhanced for the first quarter of 2013 at $139.25 million which represents a 24% increase compared to 1Q 2012. Net income increased threefold at $15 million. Analysts from Thomson Reuters consensus have revised largely upward their EPS estimates. The last EPS was at USD 1.05.

Technically, the security is in an uptrend on all time scales and it is supported by moving averages. However, prices should come back on the short term support at USD 48.1 to regain a solid impetus. This trend should allow the stock to reach its USD 51 short term resistance, which match with the bullish trend line.

In consequence, investors can take a long position in Potlatch Corporation on USD 48.1 short term support with a first target price at USD 51. A new bullish fluctuation could lead the security toward its highest level in case of breakout of this resistance. A stop loss will be fixed under the short term support at USD 48.1.