Tullow Oil plc : No sign of improvement
Entry price | Target | Stop-loss | Potential |
---|
GBX 801 |
GBX 0 |
GBX 821 |
+100% |
---|
Due to the bearish trend, a return at GBp 758.5 is anticipated.
From a fundamental viewpoint, the group is in a bad financial situation. The situation of the company is worrying with an important debt level. Analysts have downgraded their forecasts of earnings per share for 2014 from EUR 0.67 12 months ago to EUR 0.42 nowadays. This indicator is often a precursor of a declining profitability and a worsening climate of investors' confidence.
From a technical viewpoint, prices are in a downward trend. Moving averages are downward oriented and put pressure on the stock, which confirms this momentum. This trend may continue toward the GBp 758.5 support.
Investors could take a short position in Tullow Oil to target GBp 758.5. They will also place a stop loss above the GBp 808.5 resistance area, level that would invalidate our bearish strategy.
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