In a bearish trend, Tullow Oil continues to decline and is going down again.

The fundamental situation of the company remains fragile. Currently, the company is trading 4.92 times its sales, which is still a significant valuation for the company. Analysts are revising downward their forecasts on future profit of the company (for 2014 and 2015).

From a technical viewpoint, prices are in a downward trend. Moving averages are trending down and put pressure on the stock, which confirms this downward momentum. This trend may continue toward the trendline at GBp 600 and GBp 581 support.

Investors could take a short position in Tullow Oil to target GBp 581 in a mid-term horizon. They will also place a stop loss above at GBp 676 area, level that would invalidate our bearish strategy.