The London-based property investment company may come back to its historical highs if the trend line is attained.

The group benefits from solid financial statements. Regardless weaker sales volumes, improvements in operating and net margins give the company better figures in terms of EBITDA and further EPS. Indeed, its EPS is expected at £0.49 per share for 2014, this according to Thomson-Reuters analysts’ poll, while only £0.44 was registered in 2013. In addition, leverage for the ongoing fiscal year should drop to 9.96 times its current debts, giving in consequence wider leeway to the company. The extremely low P/E ratio at only 7x represents a huge advantage for investor considering a long position.

Technical patterns show a stock in the middle of an upswing. The consolidation over the GBp 342.5 resistance would push it toward higher levels and allow the breakout through the bullish trend line. If this scenario takes place, prices will be seeking for the GBp 392 resistance. Besides it, on weekly data, the 50-week moving average supported prices avoiding broader losses. After surpassing the trend line, the 20-week moving average at GBp 349 will be a key level for determining whether higher prices would be reached or not.

Investors could take advantage if prices rise over the GBp 350 trend line for buying the stock. The target will be set at GBp 392 and the stop-loss order will be triggered if prices fall below the GBp 333.8 support.