How Cairn Energy shares can break the current malaise
The oil company's share price keeps plodding along, but our chartist identifies key catalysts.
16th July 2019 08:58
by Alistair Strang from Trends and Targets
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The oil company's share price keeps plodding along, but our chartist identifies key catalysts.
Cairn Energy PLC
Explorer and producer Cairn Energy (LSE:CNE) have suffered since 2014 from a rather boring share price.
As the chart shows, the share price has been fluttering above and below the two quid level for five years, essentially giving all the hallmarks of "safety". Even near-term, the potentials being highlighted are sane!
Movements now above 180p should embark the price on a climb to an initial 187p. If exceeded, our secondary calculates at 202p. To be blunt, neither ambition is particularly impressive but the important thing shall come if 202p is exceeded for any reason.
This would tend to imply, quite firmly, a new recovery cycle is hopefully about to commence with movement toward 259p looking very possible.
There is a fly in the ointment, worth mentioning if the company find an excuse to issue negative news.
Below 138p would now prove a bad thing, risking reversal to an initial 91p with secondary, if broken, down at 60p.
From our usual perspective, we'd already be resigned to this visiting 91p eventually as two, quite distinct, big picture criteria calculate the price already being on a path to 91p.
To utterly cancel the prospect, the share requires to trade above blue on the chart, presently 230p.
This is why our paragraph on price recovery above is so important. The share price is already showing some early potential of movements to break its current malaise. All it needs to do is go up a bit.
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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