Interactive Investor

Why AIM oil explorer Anglo African Oil & Gas may have bottomed out

27th November 2018 09:17

Alistair Strang from Trends and Targets

On a downward trend for 18 months, technical analyst Alistair Strang runs the numbers to see if the selling may have finally dried up. 

Anglo African Oil & Gas (LSE:AAOG) 

This is the first time we've covered Anglo African Oil & Gas. Price movements since 2017 have shown fairly relentless declines but we're faintly interested in the drop to 5p earlier this month. Hitting such a level was an arithmetically exact scenario, a completely logical bottom.

For us, this is fairly important as while closure below 5p indicates reversals coming to 4.35p, the harsher reality allows for an eventual bottom of 0.45p. Thankfully, it bounced fairly convincingly at the 5p drop target level, almost suggesting the market knew the implications should 5p break.

The situation now is fairly useful, due to movement now above 7.5p suggesting some growth coming to an initial 8.25p, along with very probable hesitation given the prior highs.

Only if above the prior high of 8.5p dare we speculate about a future attempt at 10.25p, along with the potential of bettering the long term downtrend.

We suspect this should be worth keeping an eye on due to the potential of some quite strong recovery should it ever make its way above 'blue' on the chart.

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.

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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