The EUR 15.8 support, currently tested, should allow Repsol to rally again.

From a fundamental viewpoint, the company seems undervalued compare to its peers with a "EV/Sales" ratio of 0.54x. In the recent months, the earnings estimates for the next year are regularly revised upward by analysts. With an EPS estimated at EUR 1.86 for 2013 and EUR 1.64 for 2014, Repsol is currently paid 8.5 and 9.7 times the results.

Technically, the security fell sharply for several weeks. This drop has lead Repsol towards the EUR 15.8 support area, which could become useful as a stepping stone for a technical rebound. The target of this bullish trend is the EUR 17.2 resistance. Even though moving averages are still in a bearish trend, the oversold situation could encourage a renewed interest in Repsol.

Therefore, the proximity of the EUR 15.8 support is an opportunity to take a long position in Repsol. The first goal is the return in the EUR 17.2 resistance area, which represent a potential of 8.5%. A stop loss order can be placed under the mid term support of EUR 15.1.