Shire could exceed the symbolic threshold of GBp 2858, which correspond to the annual highs. This breakout will give to investors a signal to buy the stock.

From a fundamental viewpoint, despite a high valuation, analysts polled by Thomson Reuters have regularly revised upward the earning per share estimates for 2014. Consequently, profitability is improving, showing a relatively good financial health of the company.

From a technical viewpoint, prices are well oriented in a bullish trend on different time scales. This positive trend is expected to cross the GBp 2858 key point and will give a buying signal.

Therefore, investors will benefit from the signal given by the crossing of the GBp 2858 resistance to take a long position in the stock. The objective will be set near GBp 3050. Once the position is opened, a stop loss should be fixed under effective entry point to guard against a trend reversal.