The Ryland Group continues its bullish trend in order to test new highest level.

The Thomson Reuters consensus revised regularly upward EPS estimates of the company for the current year. Furthermore, sales are expected to rise by almost 47% in 2013.

From a technical viewpoint, the security is trading in a bullish trend in the short and the long term, supported by the 20-week moving average since almost one year. Prices are near to the USD 37.8 short term support, corresponding to the 100-day moving average, which could serve as a stepping stone to come back to the USD 42.2 resistance.

Therefore, 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 USD 42.2 resistance. A breakout of this level will be a new bullish signal for higher target price. A stop loss will be fixed under the USD 37.8 short term, threshold that would invalidate this trading strategy.