The USD 23.6 support, currently tested, should allow Northern Tier Energy to rally again.

From a fundamental viewpoint, the security is cheap with a P/E ratio of 5.79x for 2013 and 5.37x for 2014. Besides, "EV/Sales" is low with a ratio at 0.57x for this year. Analysts following the security set an average price of USD 29.6 which represents a potential of 23%. Finally, EPS estimates have largely been revised upward by analysts pooled by Thomson Reuters for few months. They were at USD 1.91 at the beginning of the year and are at USD 4.14 in July 2013.

Northern Tier Energy is oversold because it is near to USD 23.6. This situation gives credit to a potential technical rebound. Thus, the stock could find new energy and would rise towards the next USD 25.2 resistance, corresponding to the 20-day moving average level. A crossing of this threshold could give a new impetus to join the USD 27.1 resistance.

Considering technical and fundamental elements, it seems to be an appropriate timing to immediately take a long position in Northern Tier Energy in order to benefit from the USD 23.6 support area. A first target price will be the USD 25.2 resistance, ie a potential of 5%. A stop loss order will be placed under the support currently tested. Only a crossing of USD 25.2 would validate a bullish trend in order to aim a higher target price.