Myer is Australia's largest department store group and has been synonymous with style and fashion for over 100 years. It has a valuable footprint of 66 stores in prime retail locations across Australia that is complimented by its well-recognized brand and supported by its recently enhanced online, digital and mobile platforms.

From a fundamental viewpoint, Myer has a strong financial situation. It has an 11.5% yield for 2012 and a dividend payout ratio of 83.3% for the same period. The leverage is not too high and the company has a low valuation. It is currently trading 7.2 times its EPS and it has an EV/EBITDA of 4.4x.

Graphically, Myer suffered from a heavy correction and had a fall of more than 25% since early may. It rebounded on its AUD 1.54 support and crossed its 20-day moving average in the last trading sessions. This is a strong bullish signal. The stock is going to test its AUD 1.79 resistance in the coming days and if it crosses it, it will confirm the uptrend.

Active investors can take a long position immediately. The target price is the AUD 2 resistance. To avoid important losses, a stop loss order will be placed under the AUD 1.62 support.