SM | Long | Fundamentally Undervalued | (April 17, 2025)SM | Long | Technically Strong + Fundamentally Undervalued | (April 17, 2025)
1️⃣ Insight Summary:
SM Energy is showing solid upside potential both technically and fundamentally. We're at a key support zone, and the company appears significantly undervalued—making this a high-interest setup.
2️⃣ Trade Parameters:
Bias: Long
Entry Zone: Currently entering around $20.00
Stop Loss: Below recent structure (~$18.90 suggested)
TP1: $24
TP2: $39
Partial Exits: $45
Long-term targets (for position traders): $73 and even $107
3️⃣ Key Notes:
✅ Technically, SM is sitting at a strong daily support zone after a consolidation breakdown. While the recent move was bearish short-term, the broader trend since 2020 has been aggressively bullish—with over 6100% return since 2020.
✅ We're watching for a W-formation on the 4H chart, potentially forming between $20 and $19.50—this retrace may offer a cleaner re-entry or confirmation.
✅ Fundamentally, SM appears undervalued by 30% based on its P/E ratio and strong cash flow. Despite some revenue normalization projected by 2028, the overall trend remains positive, and share dilution is expected to decline.
✅ Seasonality favors long setups during this time of year.
❌ Risks: Breakdown continuation from current levels could invalidate the bullish setup—keep an eye on broader oil & gas sentiment and macro catalysts.
4️⃣ Follow-up Note:
I’ll be monitoring this trade and may provide an update if price reaches the retrace zone or breaks above $27.
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Disclaimer: This is not a financial advise. Always conduct your own research. This content may include enhancements made using AI.
