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Longer-Term Trendline Could Keep Oil Stock Afloat

Sentiment surrounding EURN is incredibly optimistic

Digital Content Manager
May 11, 2020 at 1:09 PM
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The roller coaster oil prices have been on lately has taken Belgium-based crude name Euronav NV (NYSE:EURN) on a volatile ride in recent weeks. The shares enjoyed a volatile climb higher in April, before coming to a head just south of the $12.50 region. It's been a steep slide since, though the pullback has put EURN right in-line with a bullish trendline that, according to data from Schaeffer's Senior Quantitative Analyst Rocky White, has acted as a springboard for the stock in the past. 

White's study shows EURN coming within one standard deviation of its 320-day moving average two other times in the past three years. One month after both of these signals, the equity was higher both times, averaging a 7.17% pop. At its current perch of $9.97, a similar move would put Euronav stock at $10.70 -- home to its early May, pre-bear gap lows.

EURN May 11

Despite Euronav's erratic behavior on the charts, analysts are incredibly bullish on the oil transportation specialist. All three in coverage consider it a "strong buy," plus, the 12-month consensus target price of $15.64 is a 56.8% premium to current levels. 

Options players have also taken an optimistic stance on EURN. In the last 10 weeks, 31.24 calls have been picked up for every put at the the International Securities Exchange (ISE), Cboe Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the slightly elevated 61st percentile of its annual range, suggesting a healthier-than-usual appetite for long calls of late. 

 

 

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