Ross Stores' share price was heavily penalized and is now in an oversold situation near to a solid support area.

From a fundamental viewpoint, the security is cheap with a PER of 18.39x for 2013 and 16.46x for 2014. Besides, EV/Sales is low with a ratio at 1.43x for this year.

After several weeks of fluctuations within the mid-term range USD 63.8/70 the stock is coming back close to the lower limit of the range.
Moving averages are flat and technical indicators illustrate the oversold situation. The USD 63.8 area could cause a positive reaction for the coming trading sessions and allow a technical rebound towards the USD 66.7 mid-term resistance and then the long-term target price is USD 70.

Thanks to the technical pattern and Ross Stores' strong fundamentals, active investors can take a long position above USD 63.8. The downside potential is limited and the timing seems perfect to benefit from a technical rebound.
The goals will be fixed at USD 66.7 in a first time and then at USD 70.
However, a bearish trend would regain the upper hand if the security crosses USD 63.8.