Sanderson Farms is still well oriented and is going to new highs.

Regarding the fundamentals, firstly, the company seems undervalued relatively to its peers with an "EV/Sales" ratio of 0.61x for 2013. Analysts widely revised upward in recent times their earnings per share and revenue estimates, which is a reliable indicator reflecting the company's health.

Graphically, the security is up 48.4% since the 1st January. It seems able to continue this uptrend supported by moving averages and will soon test the USD 71.2 resistance. We anticipate a crossing of this level, given the upward orientation of the stock in the medium and long term.

Taking into account all these elements, investors could buy the stock above USD 71.2 resistance. The target price is set around USD 77.2. A stop loss should be fixed under effective entry point to guard against a trend reversal.