In the past few sessions Ophir Energy‘s share sharply fell but the stock is presently coming back to a significant support level.

The consensus is optimistic on the stock and set an average target price displaying an upward potential above 50%. Moreover, EPS estimates were upward revised over the past 12 months.

Technically, the security has been falling for several weeks. This drop lead shares on the GBp 107 support area, which could become a stepping stone for a bounce in prices. This push could draw an upturn movement, thus launching the equity toward the GBp 119.9 resistance level. Even though daily moving averages are still in a bearish trend, the oversold situation could encourage a renewed interest in Ophir Energy.

Considering technical and fundamental elements, it seems to be an appropriate timing to take immediately a long position in Ophir Energy in order to benefit from the GBp 107.1 support area. A first target price will be the GBp 119.9 resistance, ie a potential of 4.7%, and by extension the GBp 127.2. A stop loss order will be placed under the mid-term support currently tested. Only a crossing of the GBp 119.9 would validate a bullish trend in order to aim for a higher target price.