Xchanging continues its bullish trend in order to test new highest level.

From a fundamental viewpoint, the company is strong. It has a reasonable valuation with an EV/Sales ratio of 0.52x. The Thomson Reuters consensus have revised recently upward EPS estimates of the company for the current year (from GBP 0.09 to GBP 0.13).

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 20-day moving average. This trend should allow the stock to breakout its GBp 162 short term resistance, which will give another upward signal in order to reach the GBp 179.3.

In consequence, investors can take a long position in Xchanging with a target price at GBp 179.3. This level is the long term resistance. First, the share has to breakout the next resistance at GBp 162. A stop loss will be set under the GBp 155.