TUI Travel has still an uptrend and is going toward its highest level.

The company shows strong fundamentals. Firstly, the security is undervalued compared to its peers with an EV/Sales ratio estimated at 0.23 by the Thomson Reuters consensus for this year. Moreover, analysts revised upward EPS estimates for this year and that let see a great potential for the security on the stock market.

Technically, the security shows a bullish configuration on all time scales. Prices are supported by increasing moving averages. The stock is near the GBp 304 short term support, level corresponding to the 50-day moving average and technical indicators show an oversold situation. Thanks to this configuration, it should reach the GBp 330 resistance.

Therefore, taking into account the strong fundamentals and technical patterns, it seems opportune to take a long position at the current price in order to benefit from a possible reversal. The first target price is the GBp 330 resistance. A breakout of this level will be a new bullish signal for higher target price. A stop loss will be fixed under the GBp 304 short term support, threshold that would invalidate this trading strategy.