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

The largest provider of oil drilling services in Russia keeps strong fundamentals. On its recent nine months update, the company announced that revenues were up by 9.9% comparing to the same period of last year. Indeed, it displays attractive valuation levels with a low P/E ratio (8.98x in 2014 and 8.60 in 2015).

Technically, the stock is currently oversold and is trading in a mid-term bearish trend. In the short term, this trend is reversed after the contact with the USD 24.16 area. The security should be able to confirm its rebound in further sessions. This support means a trading opportunity in order to anticipate a technical rebound toward USD 26.61 and by extension toward USD 28.5.

Therefore, it seems opportune to take a long position on Eurasia Drilling at current prices. A confirmation of this pattern would enable the security to reach the USD 28.5 resistance, so a potential gain of approximately 14%. However, investors should not insist below the USD 24.16 and a stop-loss order should be placed under this threshold.