PPG Industries continues its bullish trend in order to test new highest level.

The company’s fundamentals are still strong. The ROE (return on equity) for 2013, is estimated at 26.4%, it shows the good capacity of the company to generate profit. Furthermore, analysts from Thomson Reuters consensus have revised largely upward their EPS estimates. The last EPS was at USD 6.06.

Technically, the security is in an uptrend on all time scales and it is supported by moving averages. The bullish trend will not be stopped until prices are above the USD 153.2 short term support. This trend should allow the stock to cross its USD 158.9 medium term resistance.

Therefore, taking into account the strong fundamentals and technical patterns, it seems opportune to take a long position above the USD 158.9 long term resistance. The first target price is USD 174 (swing effect). A stop loss will be placed under the entry point.