Analysis: Pantheon Resources and Canadian Overseas Petroleum
28th June 2022 07:44
by Alistair Strang from Trends and Targets
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These two oil companies have enjoyed differing fortunes. Here's what independent analyst Alistair Strang thinks the future holds for both.
As far as we’re aware, the only thing these two shares have in common is something to do with oil, along with both featuring in our emails. Pantheon Resources (LSE:PANR) actually presents a bit of an issue for us, with movements since we covered the share in February proving problematic. Aka, weakness for some reason!
Canadian Overseas Petroleum Ltd (LSE:COPL) (referred to as COPL), based in Canada and listed on both the LSE and Canadian market, are headquartered in Canada, operating in North America and Africa.
In October 2021, the company indulged in our least favourite method to make their share price sound attractive, a 100:1 split. This, “we’ll take 100 of your 0.3p shares and give you a brand new 30p share back” rarely ends well for private investors, often feeling like a last ditch effort to delay an inevitable crash or delisting. Currently trading around 17p, it’s unlikely many folk are impressed with price movements since the share split.
Making matters worse, there’s an immediate threat of weakness below 16.15p triggering near-term reversals down to an initial 15.3p with our secondary calculation, if this initial target breaks, working out at 12.6p and hopefully a proper bounce.
Visually there’s very little encouraging a bounce at such a level, other than the slightly vague Blue downtrend since 2016 and a hope a bunch of folk dig out their coloured crayons, assuming this trend line shall prove important.
Hopefully, this indeed proves the case as such a level of reversal risks horrific long-term consequences, taking the share price into a zone where an “ultimate” bottom works out at 3.5p, this being a level below which we cannot calculate.
COPL requires to exceed 22.5p to suggest an attempt to escape its immediate doom is kicking into play.
Past performance is not a guide to future performance.
Pantheon Resources
Pantheon Resources is proving just a little confusing at present. Earlier this year, the share price produced all our required criteria to shift upward to 166p, the rise completely fading out at 156p and falling remorselessly since.
We’re just a little curious as to whether the reversals are about to cease as there’s currently no doubt the share price is reacting to Blue on the chart below. The problem is, the share needs to start trading above 103p to convince us a rebound is probably genuine!
Past performance is not a guide to future performance.
Thankfully, there are early indications which point toward optimism as above 103p currently calculates with the potential of recovery to an initial 118p. If bettered, our secondary works out at 141p and an almost certain requirement to visit the numbers yet again.
If everything intends to go pear-shaped, Pantheon needs to reverse below 86p to press the panic button, allowing downward movement to an initial 64p with secondary, if broken, a hopeful bottom level at 47p.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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