Rose Rock Midstream LP : An appropriate purchase level
Entry price | Target | Stop-loss | Potential |
---|
US$45.99 |
US$0 |
US$43.9 |
-100% |
---|
Rose Rock Midstream shows relatively strong fundamentals and is coming back to attractive price.
From a fundamental viewpoint, sales are expected to grow for the next two years according to the Thomson-Reuters consensus. Moreover, as much as margins are improved, the net earnings are expected to rise by 192% according to the same consensus.
The value, currently oversold, evolves within a downtrend in the medium term. In the short term, this trend could be reversed as it approaches the USD 45.6, level from which the bullish run could starts. This support represents a buying opportunity in the context of a technical rebound toward USD 50 and by extension USD 54.2.
The trading strategy can benefit from the proximity of the strong support currently tested in order to buy Rose Rock Midstream in a good timing. Investors might placed a stop loss order at USD 44.2 in order to avoid important losses.
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