Marathon Petroleum’s share price was heavily penalized and is now in an oversold situation near to a solid support area.

From a fundamental viewpoint, Marathon Petroleum seems undervalued in terms of enterprise value. Based on the current price, its market capitalization, plus its net debt, represents 0.44 times its revenues.
This valuation is only 7.3 and 8.8 times the two next years earnings.
Furthermore, EPS estimates have been revised upward in the last few months by analysts despite the fall of crude oil prices.

After several weeks of horizontal fluctuations within the mid-term range USD 43.7 /59.34, the stock is coming back close to the lower limit of the range.
Moving averages are quite flat and technical indicators illustrate the oversold situation. The USD 45.7 area could cause a positive reaction for the coming trading sessions and allow a technical rebound towards the USD 52.7 short-term resistance.

Thanks to the technical pattern and Marathon Petroleum’s strong fundamentals, active investors can open long trade above USD 45.7. The downside potential is limited and the timing seems perfect to benefit from a technical rebound.
The goal will be fixed at USD 52.7 in a first time.
However, a bearish trend would regain the upper hand if the security breakdown the USD 45 area.