The support area of USD 49.44 at the moment tested might facilitate a rally, at least technical. The fundamentals of the company could validate this scenario.

From a fundamental viewpoint, with a "enterprise value to sales" ratio for this financial year of 0.37 the company seems weak valued relatively. In the recent months the earnings prospects for the next year is regularly revised upwards by analysts covering the enterprise. With estimated earnings per share for this year by consensus of USD 6.04 and USD 6.8 for next year, the share at current price is paid 8.42 and for next year 7.48 times the results.

Technically, the company has a negative configuration on the short term and under the resistance area of USD 54 as identified by downward trend of 20-days moving average, at the moment situated at USD 53.5. However, after had fallen in the past sessions, the share is at the moment in oversold condition and close to an important technical support placed at USD 49.44. This level might arrest bearish trend in the short term.

Therefore, we might consider the support's proximity of USD 49.44 as an opportunity to buy Murphy Oil Corporation 's share. We will aim at first target price of USD 54 that is potential gain of 6.2%. Only if the security overcomes this resistance's level we could forecast an upwards trend. We should cover the position with a stop loss under the support's level already tested.