The stock is actually traded in a strong resistance area, but good fundamentals should help prices to cross it.

In a fundamental viewpoint, analysts significantly revised upward their earnings and sales estimations. Sales should be constant compared to last year, but increasing margins should lead to an EPS of USD 7.81 this year while it was worth USD 5.18 in 2013. The financial situation is healthy: the leverage is expected at 0.95x for the current fiscal year. Valuation levels show the stock’s attractiveness, with a P/E ratio at 13.2x 2014 estimates and an enterprise value at 6.38 times EBITDA for the same period.

Technically, the bullish long term trend has run out of steam for a few months, toward the USD 89.3 midterm support. In the contact to this level, prices began a rebound toward the USD 103.4 short term resistance. The recent expulsion gap gave more energy to the stock to cross this threshold in the coming sessions. Weekly moving averages are still well oriented, and the 20-day moving average supports prices.

Therefore, investors can open long positions on Huntington Ingalls Industries once the USD 103.4 threshold clearly crossed. The target will be set at USD 107.8. A stop loss will be placed under entry points, near USD 101.2.