The American retailer of hardwood flooring, witnesses a recovery process in shares prices as it recently opened a new store in Baltimore, Maryland.

The corporation has being outperforming since 2008. Sales gradually increase year over year and also does net income. Margins have been improving since 2011 and this positive movement is meant to continue at least in a 2018 horizon. Estimations on EPS made by analyst during the last twelve months have been encouraging ($3.5 per share) as the company recently released better than expected earnings (1.5% over forecasts) concerning the fiscal year 2013. The consensus remains buyer while target price fixed by Thomson-Reuters analysts is set close to $120.

Technical patterns have been showing how prices climb as time runs. The morning doji star of March 27th session deeply confirmed the bullish reversal, providing lumber with strong probabilities of reaching the USD 101 resistance anytime soon. This level represents in fact our main target. Weekly moving average being well-oriented there will be no major concerns for attaining the objective.

For reasons above exposed, the timing seems suitable for long position taking at current prices and so profiting from the security jump toward the USD 101 resistance. A stop loss could be set at USD 91.8, avoiding this way to take unnecessary risks.