The USD 72 support area, currently tested, might facilitate a technical rebound. The company’s fundamentals could validate this scenario.

From a fundamental viewpoint, the security is cheap with a P/E ratio of 7.3x for 2013 and 13.2x for 2014. It is cheaper than the industry average. Profitability of the company is very high with a profit margin of 17.8% for this year. Moreover, analysts from the Thomson Reuters consensus have revised upward their earnings estimates for this year.

Technically, the security shows a bullish configuration on all time scales. Prices are supported by the 20-day moving average. The proximity of the USD 72 short term support should allow the stock to rebound in the direction of the USD 76 short term resistance.

In consequence, investors can take a long position in Hess with a first target price at USD 76. A stop loss will be set under the short term support.