Northgate could reach its GBp 637 resistance.

The economic and financial situation of the company is still strong. EPS have been revised largely upward by analysts during this year. This situation should maintain the current bullish trend.

From a technical viewpoint, the security is trading in a bullish trend in the short and the long term. Increasing moving averages let think there will be no reversal in the coming trading sessions. This growth should help to reach soon the GBp 637 short term resistance. Indeed, prices are currently testing the GBp 610.5 short term support which corresponds to the 50-day moving average, and could rebound on it.

Thanks to these good indicators, it seems relevant to take a long position in Northgate at the current price. The target price is the GBp 637 resistance. A stop loss will be set under the GBp 610.5 short term resistance because a breakdown of this level would damage technical pattern.