Where next for the UK Oil & Gas share price?
UKOG shares have been heading just one way, so our analyst investigates key catalysts for a recovery.
10th July 2019 09:09
by Alistair Strang from Trends and Targets
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UKOG shares have been heading just one way, so our analyst investigates key catalysts for a recovery.
UK Oil & Gas (LSE:UKOG)
Our review last July warned of dangers if UK Oil & Gas (LSE:UKOG) managed to close a session below red on the chart. An event such as this would project the share into a region where we really aren't confident on predicting a bottom.
The intervening year has proven both deathly boring but neither has UK Oil & Gas share price drilled itself in the foot. Instead, the share price has bumbled along as if nothing has really happened.
Equally important, we've painted three downtrends on the chart, each of which would normally be expected to provoke reasonable movement when the share price blasted through the trend.
The light blue line certainly afforded some slight growth, probably due to internet chatroom optimism. This flash in the pan quickly faded and the next break, through the green downtrend provoked as much interest as a PM contender's speech.
At present, the share price is playing coyly with the blue downtrend and we're just not sure what will have if (or when) the price manages to kick its way through the line.
There is something worthy of consideration. Despite the share price not really going up when it betters downtrends, neither has it succumbed to temptation and crashed despite breaking the long-term red uptrend. Our best guess "bottom" projection is an obviously impossible Minus 0.5p.
The subliminal message given is of the market not being ready to give up on the share, just yet.
In fact, some hope is possible, simply requiring the right type of news. At present, above 1.2p is supposed to generate slight recovery to a useless 1.5p.
If exceeded, secondary is at 1.95p. Thanks to a glass ceiling existing at the 2p level, we'd need closure above this point to give real hope for the longer-term as some quite vivid recovery is possible.
For now, about the only hope is straightforward. It's neither going up nor down, so something is due to happen!
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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