The homebuilder, Bellway, shows a strong performance for several trading sessions.

The fundamental qualities of the group are clearly attractive as evidenced by the upward revisions of earnings per share and revenue estimations. The profitability of the company's business remains good. The group benefit from the strong recovery of the UK's housing sector.

The trend is bullish in the medium and long term. However, the stock is stuck within the GBp 1377 / 1270 trading range for few months. But the last bullish movement has been triggered by the lower limit of a bullish channel and the 100-day moving average. Thus, the latter seems more powerful and able to break out the higher limit of the trading range, in order to set new annual records.

Taking into account all these elements, investors could buy the stock on crossing of the GBp 1377 resistance, confirmed in daily closing price. The target price is set at GBp 1485. A stop loss will be fixed below the effective entry point.

On 5 July 2013, Surperformance, the 4-Traders' publisher, had a long position of 280 Bellway' stocks bought at GBp 1270 on 10 June 2013