Ross Stores could rebound as suggested by its fundamentals and technical patterns.

According to Surperformance ratings, the company has strong fundamentals. Indeed, Sales and margins have improved and analysts’ estimations are that revenues should grow of 7% while net margin is expected to stay at 8.2%, offering an interesting profitability level for the sector. Moreover, the group is expected to keep its positive cash position. EPS is expected to reach USD 4.26, +10% the 2014 one and the stock benefits from a strong buy consensus with an average potential considering the average target price.

After several weeks of horizontal fluctuations within the mid-term range USD 65.8 / USD 81.6, the stock is coming back close to the lower limit of this range, near its bottom upward trend line. The USD 69 area is an interesting level as the stock could begin a technical rebound towards USD 73.50

Therefore, a long position could be taken at the current prices, The first goal is a return in the USD 73.5 area. A stop loss order can be placed under the support currently tested protecting from a downward overflow of the trend line.