Prices are well oriented and may come back to the annual highs soon.

Westinghouse Air Brake Technologies benefits from regular upward revisions in earnings per share. Further, sales are expected to increase by more than 8% this year and by almost 30% between 2012 and 2015. To finish, the stock is still low valued with a P/E ratio of 10.9x for 2013.

The trend is bullish in the medium and long term as shown by the well orientation of weekly moving averages. However, the stock halted upon contact with the USD 56 resistance, and is back to an opportune entry point. Indeed, the security may use the USD 52.7 support, corresponding to the 50-day moving average, as a stepping stone to reach USD 56 once again.

Thus, it seems opportune to take a long position at the current price. The first objective will be a comeback towards USD 56. A stop loss must be placed below the USD 52.7 short term support.