Barratt Developments could continue its rise towards annual highs.

From a fundamental viewpoint, the company is strong. It has a reasonable valuation with an EV/Sales ratio of 1.01x. The Thomson Reuters consensus revised regularly upward EPS estimates of the company for the current year. The net income is expected to skyrocket by almost 90% in 2013.

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. Moreover, prices are on the lower bound of the bullish channel, which is now corresponding with the 20-day moving average. So this is an optimum entry point to benefit from the uptrend. This growth should help to reach soon the GBp 258.7 level.

According to both technical and fundamental elements, it seems opportune to take a long position at the current price. The bullish trend should allow the security to reach GBp 258.7. If the stock crosses it, a new target price will be set. A stop loss will be placed under the GBp 231.1 short term support to avoid a downtrend.