Range Resources Corporation : Too expensive
Entry price | Target | Stop-loss | Potential |
---|
US$60.6 |
US$54 |
US$61.5 |
+10.89% |
---|
Range Resources Corporation is an independent oil and gas company that explore, develops and acquires oil and gas properties. The company conducts operations primarily in the South-western, Appalachian and Gulf Coast regions of the United States.
According to Thomson Reuters’ consensus the share seems strongly valued with a price earnings ratio at 65x for this financial year, and a value enterprise to revenue ratio at 9x for the same year. In add the earnings per share for 2013 is regularly revised downward by analysts covering the share.
Technically, the share is in bearish trend in short-term after reached the historic high of 74 USD. This trend is represented by moving average 20 periods orientated downward. In weekly data the share is on pivot point of 62.6 USD. We suggest attention on the stock, and take a short position in the case of downward cross with 60.6 USD short-term support. In fact this movement could push the security towards long term-support of 54 USD. A stop loss at 61.5 USD is necessary in order to cover the position.
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