Gentex Corporation could reach its USD 30.5 resistance.

The company’s fundamentals are still strong. The group has a return on equity of 17.5%, sign of a good ability to generate profit. Moreover, analysts from Thomson Reuters consensus have revised largely upward their EPS and revenue estimates.

Technically, the security is in an uptrend on all time scales and it is supported by moving averages. The bullish trend will not be stopped until prices are above the USD 27.7 short term support and the 20-day moving average. This trend should allow the stock to reach its USD 30.5 resistance, which will be the first target price.

According to both technical and fundamental elements, it seems opportune to take a long position at the current price. The bullish trend should allow the security to reach the USD 30.5 resistance. If the stock crosses it, a new target price will be set. A stop loss will be placed under the USD 27.7 short term support to avoid a downtrend.