The USD 38.15 support area, currently tested, might facilitate a technical rebound. The company’s fundamentals could validate this scenario.

According to Surperformance rating, the company is an opportunity for a trading strategy. Indeed, it is a good compromise between its value and its visibility.
Moreover, brokers have lately revised upward their revenues' estimates and count on EPS of USD 5.13 for this year (+60% for the past 12 months). Sales are also in a good trend and have been recently sharply revised upward.

Currently the stock is oversold and, in the mid-term, is trading in a bearish trend. In the short term, this trend should drive prices to the USD 38.15 area. Seadrill should be able to confirm a reversal after a contact with this long term support. This support is a trading opportunity in order to anticipate a technical rebound towards USD 40.7 and by extension towards USD 43.1.

Therefore, the proximity of the USD 38.15 support will be an opportunity to take a long position in Seadrill. The first goal is a return to the USD 40.7 resistance, that is a potential of 7%. A stop loss order can be placed under the support currently tested.