Imperial Oil’s share price is back to the CAD 38.8 support for a second time.

From a fundamental viewpoint, the company has a value in line with the industry as its enterprise value ratios shows.
Nonetheless, recently, EPS estimates for the two coming years have been revised upward by analysts. This positive fact opens the way for a better evaluation of the security by investors.

Technically, the security fell sharply for several weeks. This fall is leading Imperial Oil towards the CAD 38.8 support area which could become useful as a stepping stone for a technical rebound. The target is the CAD 41 resistance. Even though moving averages are still in a bearish trend, the oversold situation could encourage a renewed interest in Imperial Oil.


So as to make the most of a potential technical rebound of Imperial Oil, it seems opportune to take a long position once prices reach CAD 38.8, in order to benefit from a rebound to the CAD 41 short term resistance. A confirmation of this pattern would enable the security to reach the CAD 42.3 resistance. Investors should not insist under CAD 38.8 and are better to place a stop loss order under this threshold.