Babcock International Group continues its bullish rally to test new highs.

From a fundamental viewpoint, despite a high valuation, analysts polled by Thomson Reuters have regularly revised upward the earning per share estimates. Consequently, profitability is improving, showing a relatively good financial health of the company.

Graphically, prices are well oriented in a bullish trend on different time scales. This positive trend is expected to go toward GBp 992.

Therefore, investors could take a long position in Babcock International, on crossing of the GBp 992 mid-term resistance. A stop loss should be placed at GBp 965.2.