Diamond Resorts International shows relatively strong fundamentals and is coming back to attractive prices.

From a fundamental viewpoint, the security is cheap with a P/E Ratio expected at 10.89x for 2016.

In a technical point of view, the stock is back on its daily support (USD 22.5) and a trendline. These levels have been tested few month ago and helped for a technical rebound.
This situation gives credit to an upward potential. Thus, the stock could find new energy and would rise towards the next USD 25.9 resistance.

So as to make the most of a potential technical rebound of Diamond Resorts International investors should open a long trade at the current price. A confirmation of this pattern would enable the security to reach the USD 25.9 resistance, with a potential gain of around 10%. Investors should not insist under USD 22.5 and are better of placing a stop loss order under this threshold.