Genel Energy's share price was heavily penalized and is now in an oversold situation near to a solid support area.

The company fell sharply linked to the drop of oil price after OPEC decision. The company keeps attractive fundamentals with interesting profitability and valuation levels. The P/E ratio should decrease from 18.0x in 2014 to 11.0x in 2015. Net margin is significant and is expected to raise from 28.3% to 30.5% in the same period. Analysts consensus target an appreciation potential of 48% on average.

Technically, the security is in a bearish configuration in the short term. The GBp 638.5 level allowed the stock to realize a technical rebound and cross the 721.5 short term resistance. 20-day moving average is positively oriented and is now crossing the 50-day one, which should support the bullish movement.

According to these elements, it would be opportune to take a long position on Genel Energy security to target a return close to the GBp 822 resistance. Investors should place a stop loss order under the resistance recently crossed to avoid a potential bearish movement.