Newfield Exploration : The correction could continue
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$25.02 | $0 | $31.01 | +100% |
The fundamental situation of the company remains fragile. Currently, the company is trading 2.46 times its sales, which is still a significant valuation for the company.
Technically, the share is in a downward trend. The moving averages are decreasing and are still above prices, thereby stopping any rebounds. The security is going toward the USD 23.7 support, a level that will represent the first target.
Taking into account fundamental and technical elements, investors can initiate a short position with a price target at USD 23.7. A return towards USD 30.11, the short-term resistance area, will invalidate the bearish strategy, which justifies a stop loss.