Tollow Oil is one of the largest independent oil and gas exploration and production companies in Europe. It operates in three geographical segments: Europe, South America and Asia; West and North Africa and South and East Africa. Tullow Oil has finished its rebound and should now start a bearish trend.

From a fundamental viewpoint, analysts revise downward EPS estimates. Indeed, from now on, Thomson Reuters consensus expects a GBp 0.78 EPS for the current year and a GBp 0.8 EPS for the next year. On this basis, the security is currently trading respectively 27.57 and 26.71 time its sales. This situation does not argue for an investment.

A new decline in prices is likely to happen because of the technical configuration. Prices are under the 20-day moving average at GBp 1354.8 and this stop any possible bullish impetus.

Taking into account all these elements, it seems appropriate to take a short position in Tullow Oil with a target price in the GBp 1258 area. At the current price, this is a potential gain of 8.18%. A stop loss will be fixed above the GBp 1395 resistance.