EPL Oil & Gas has still an uptrend and is going toward its highest level.

The economic and financial situation of the company is still strong. Estimated sales from Thomson Reuters consensus are encouraging. Debt is decreasing rapidly and the leverage is reducing at 2.70x in 2012 and 1.32x in 2013.

From a technical viewpoint, the security is trading in a bullish trend in the short and the long term. Prices are near to the USD 26.2 support, corresponding to the 50-day moving average. We expect a continuation of the decrease towards this USD 26.2 support, level which should help to reach soon the USD 28.3 resistance.

A long position could be taken around USD 26.2 in order to aim a rebound towards USD 28.3. A stop loss must be placed below the USD 26.2 short term support to avoid any downtrend.