Shares of French oil company Total present us with a new opportunity to go long. Our outlook has been bullish for this stock but in our previous analysis we recommended closing out half of open long positions to pocket some profits. Our price target for the remaining long position was €43.60 but the stock has fallen short and turned around at €43. Since then, it has found support at the bottom part of a perfect bullish price channel, presenting us with a new buy signal. At this point, the risk-return tradeoff is optimal for opening new longs as long as the stock holds up above the low of the latest correction (€37). In other words, it is a good time to open long positions with a stop-loss order slightly below €37. As long as the stop-loss order is not executed, we do not rule out a renewed rally to €43.

In February, the French oil company presented 2011 attributed net earnings of €12.276bn, a 16% gain from 2010. Revenue rose 15.9% to €184.693bn with a 21% increase in exploration and production revenue. Revenue from refinery and marketing fell 7% and revenue from the chemicals division fell 10%.

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