Why Hurricane Energy is not a happy share
With events conspiring against this once promising share, here is an analyst's latest prognosis.
9th September 2020 08:22
by Alistair Strang from Trends and Targets
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With events conspiring against this once promising share, here is an analyst's latest prognosis.
A chum once explained something important about his hobby. It’s called “Fishing” because of the doubt over any success. Otherwise, it’d be called “Catching”. Hurricane Energy (LSE:HUR) shares seem to fall into a similar mindset, oil exploration being the focus rather than oil extraction.
Regardless, due to the lacklustre oil price, it’s pretty certain Hurricane's share price would be a shambles no matter what they were up to. Low oil prices will doubtless make some of their discoveries unviable at the present and we’re not seeing any immediate relief on the horizon for the oil market.
However, Hurricane does not require a great deal of movement to hopefully trigger some share price recovery. At present, the share is bouncing around the 5p level, needing above 6.6p before we’d dare suspect it’s about to trigger something useful.
Next, above 6.6p calculates with an initial ambition of 8.5p with secondary, if bettered, up at 9.1p and almost certain hesitation. Only with closure above the 9.1p level shall we feel a glass ceiling has been pierced, one capable of producing some proper recovery toward a future 13.7p and beyond.
Alas, it’s also worth remembering the share price is languishing in a zone where we cannot calculate any further drop targets. The Big Picture makes this impossible, thanks to the price managing below our ultimate bottom number of 11p. At present, this is not a happy share.
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.