MTP Trade #15 2019
Buy DNO for a bounce
We think DNO is oversold on a technical basis and we expect a tradeable bounce this week.
We think there is potential for the stock to trade up 5% to18 NOK and possibly higher. We would recommend buying at 16.90 or better, stop at 16.25
Oil prices seem to be holding at the $70 level and with the incidents in the gulf, combined with Venezuela and Iran. A short term rally in Oil will help DNO this week.
From a technical standpoint DNO is very oversold, we also expect the broader stock markets to bounce for a few days after the sell off last week.
We don’t see this as a buy and hold trade but more of an opportunistic short term trade with good risk reward characteristics.