Are Tullow Oil shares set for recovery?
1st June 2022 06:23
by Alistair Strang from Trends and Targets
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Independent analyst Alistair Strang examines prospects for this West Africa-focused operator.
“Tullow Oil is an independent oil and gas exploration and production company. The Group has interests in over 30 exploration and production licences across eight countries.”
The above, taken from Tullow Oil (LSE:TLW)'s 'About Us' page on their website, surely suggests the company must enjoy a strong base, a solid level from which the company share price almost must exhibit some recovery given what's happening with oil and gas prices worldwide? Unfortunately at present there's very little hope being displayed by recent price movements.
From a high of £16 in 2012 to a low of 7.5p in 2020, and presently trading around 55p, the share price requires it exceed 61.5p to exceed blue on the chart, a downtrend since 2019, which we feel will prove relevant to the future.
Movement above this line looks extremely capable of triggering recovery to an initial 69 with secondary, if bettered, at a comfortable-looking 71.5p. We've a collection of different indicators, all giving the 71p level as a key target level, one which should prove game-changing for the longer term, if the share price manages to close above 71p.
For now, there appears a slight issue, should the price discover an excuse to ignore world events and slump below 52p. This is potentially nasty, risking a visit to an initial 48p with secondary, if broken, at a hopeful bottom of 38p.
Source: Trends and Targets. Past performance is not a guide to future performance
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.
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