What chance a share price rally at UK Oil & Gas?

This high-profile domestic oil and gas company has had a volatile time of late, but has shown promise in the past. Chartist Alistair Strang discusses potential.

UK Oil & Gas (LSE:UKOG) 

Last time we reviewed UK Oil & Gas Investments back in May, criteria were given for a movement to 2.2p, something we regarded as important. The target was achieved at the start of July and now we're facing a bunch of "what now?" emails.

One interesting facet of the shares price movements comes from the dance being enacted against the green line on the chart. We regard this trend as important, designating the period since the share price was manipulated downward back in October 2017 (circled).

There's a pretty broad hint a further trend has developed, placing the price in a region where movement above 2.65p should now generate some growth to a fairly useless 3p. If exceeded, secondary comes along at 3.6p.
 
Crucially, despite the visual hint of a glass ceiling forming at 3.6p level, future closure above 3.4p should give the share sufficient impetus for a challenge of the 6p level.
 
And then, we need to review the tea leaves.

The unpleasant - though visually unlikely - alternate remains. If any reason is found to close the price below red (1p), extreme concern for the future shall be fully justified.

In summary, despite all the lines on the chart, this feels like a share which is awaiting positive sentiment.

Source: interactive investor      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.

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, Shareprice, or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.