Eurasia Drilling Co Ltd : We anticipate a reversal
Entry price | Target | Stop-loss | Potential |
---|
$39.01 |
$0 |
$37.9 |
-100% |
---|
Eurasia Drilling could regain its upward trend after having run out of steam.
From a fundamental viewpoint, the security is cheap with a P/E ratio of 13.4x for 2013 and 11.6x for 2014. It is cheaper than the industry average. Sales are estimated to increase by +43.7% by 2015 and profitability is relatively important with a net margin of 12% for this year.
Graphically, buyer flows are reduced. The share has known a decrease towards the USD 38.7 support, which allowed buyers to drive a rebound in order to maintain prices above the 100-day moving average and the bullish trend line. Thus the stock should come back to its positive trend and reach again the USD 41.5 pivot point.
In this configuration, a long position can be opened at the current price in order to reach USD 41.5 A stop loss must be placed below the USD 38.7 support.
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