The stock of the manufacturer of household, toiletry, pharmaceutical and food products, Reckitt Benckisern, is well oriented to reach again its GBp 4950 resistance.

The company is highly profitable with 19% of net margin in 2012 compared to 8.8% in average for the sector. Further, the financial situation is healthy with a leverage (net debt/EBITDA) of only 0.89x in 2012. Eventually, the stock seems under-valued with a P/E ratio of 17.8x estimated for 2013 (sector : 20.8x).

Technically, the trend is bullish in the long term with well oriented weekly moving averages. However, the stock has known a slight consolidation phase and is now back to a bullish trend line, corresponding to the 100-day moving average. Thus, the share may bounce towards its GBp 4950 mid-term resistance.

As a consequence, it seems interesting to take a long position at the current price. The first bullish target is GBp 4950. A stop loss must be set below the bullish trend line, currently around GBp 4670.