The USD 39.4 support area, recently tested, might facilitate a technical rebound. The company’s fundamentals could validate this scenario.

In the recent months, the earnings estimates for the next year are regularly revised upward by analysts.
With an EPS estimated at USD 2.57 for this year and USD 2.7 for the next year, Atmos Energy is currently paid 15.4 and 14.7 times the results.

After several weeks of horizontal fluctuations within the mid-term range USD 38.6 / USD 45.2, the stock is coming back close to the lower limit of the range.
50 and 100-day moving averages are flat and technical indicators illustrate the oversold situation. The USD 39.4 area could cause a positive reaction for the coming trading sessions and allow a technical rebound towards the USD 41.9 short-term resistance.

Considering technical and fundamental elements, it seems to be an appropriate timing to immediately take a long position in Atmos Energy in order to benefit from technical rebound. A first target price will be the USD 41.9 resistance, ie a potential of 4.8%. A stop loss order will be placed under the short term support. Only a crossing of USD 41.9 would validate a bullish trend in order to aim a higher target price.