Newfield Exploration : The correction could continue
November 09, 2012 at 08:55 am EST
By
Entry price | Target | Stop-loss | Potential |
---|
$25.02 |
$0 |
$31.01 |
+100% |
---|
In a bearish trend, Newfield Exploration continues to decline and going to down again.
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.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.