EPL Oil & Gas could reach its USD 38.07 resistance.

The company’s fundamentals are still strong. The high valuation of the group shows a great investors confidence in it because there are willing to pay a high price for the stock. Otherwise, analyst from Thomson Reuters consensus have regularly revised upward EPS estimates for this year.

Technical patterns are in the green: prices are up for several months. The movement should continue in the coming trading sessions. The 20-day moving average should help to reach the USD 38.07 mid term resistance.

Thanks to these good indicators, it seems relevant to take a long position in EPL Oil & Gas at the current price. The target price is the USD 38.1 resistance. A stop loss will be set under the USD 35.9 short term support because a breakdown of this level would damage technical pattern.