J Sainsbury should breakout the GBp 400.8 resistance in the short term.

From a fundamental viewpoint, the group is in a good financial situation. The ratio Entreprise value/sales of 0.41x for 2013 show a low valuation level, evidence of an investment opportunity.

Graphically, the security is up 20% since the 1st January. It seems able to continue this uptrend supported by moving averages and to cross the GBp 400.8 mid-term resistance. The crossing of this level, will give an upward orientation of the stock in the medium and long term.

Taking into account all these elements, investors could buy the stock at the current price. The target price is set around the GBp 430, corresponding to the bullish trend line. A stop loss will be fixed below the GBp 392.8 short term support, threshold that would invalidate the strategy.