Health Net could reach its USD 51.1 resistance.

The company shows strong fundamentals. Firstly, the security is undervalued compared to its peers with an EV/Sales ratio estimated at 0.27 by the Thomson Reuters consensus for this year. The consensus revised upward EPS estimates for this year and that let see a great potential for the security on the stock exchange. EPS should worth USD 2.90 in 2014 compared to USD 2.14 last year. Moreover, with a leverage at 0.02x expected for the current fiscal year, the company's financial situation is healthy.

Technically, the security is in an uptrend on all time scales and it is supported by well oriented moving averages. The bullish trend should not be stopped until prices are above the USD 44.4 short term support, and the crossing of the trendline will be a strong buy signal. This trend should allow the stock to reach its USD 51.1 midterm resistance, which will be the first target price.

In consequence, investors can take a long position in Health Net with a first target price at the USD 51.10 midterm resistance. A new bullish fluctuation could lead the security toward its highest level in case of breakout of this resistance. A stop loss will be set under the USD 44.4 short term support and the 20-day moving average.