After running out of steam Home Capital Group can resume its bullish trend.

From a fundamental viewpoint, the security has many qualities. According to Thomson Reuters, sales are expected to rise by more than 15% in 2013. Moreover, at the current price, the company is trading 7.85 times its earnings for this year and thus has a significant potential.

Following a bullish wave, the stock now shows a slight decline that led it towards its upward trend line, which is now corresponding to the 100-day moving average. On this level, remobilization of buyer flows would allow an uptrend in the medium and long term.

Given this configuration, it seems opportune to take a long position at the current price. The first objective will be set at USD 58.8. A stop loss will be fixed below the USD 55 support to limit the risk.