The J D Wetherspoon' stock may soon break a major resistance level.

Analysts from Thomson Reuters have regularly revised upward their EPS estimates for this year. Furthermore, sales estimates are encouraging. To finish, the valuation of the company is low as shown by an EV/Sales ratio of 0.92x and a PER of 12.8x for 2013.

Technically, prices are near to the GBp 550 major resistance level which is stopping the security since November 2012. Thanks to the 20-day moving average, the stock may be able to break this major resistance soon and then reach new annual highs.

Thus, it seems interesting to take a long position in case of breakout of the GBp 550 resistance confirmed in closing price. The objective will be GBp 575 then GBp 628. Nevertheless, a stop loss must be placed below the effective entry point.