The weekly chart has formed a symmetrical triangle and is approaching the moment of truth. I think a long could be worth contemplating with a massive gap fill in mind dating back to the end of 2019. With Russian oil being phased out, the R/R could be worth a managed trade.
Tullow is looking good for a retest of the 0.236 fib level. MACD is looking like it's in decent shape and the RSI still has legs.
From a geopolitical standpoint Tullow's operations are a long way from the sabre rattling in easter Euope so this bodes well also.
Target is 65.75 GBX.
If we clear that then and resistance acts as support the next target is 78.65...
this is just a trading idea I had for a small-cap company that should perform well under a strong oil rally in 2022. Short 6mo hold, not as exciting as crypto, but a good trade nonetheless.
Now that TLW have received its $500mill for the sale with the FID to follow. The CMD RNS didn't prove to add anything to the SP.
It crossed the ATL of 33.5 - 35p range and was rejected.
Followed by a retest of the 0.38 of the Fib and going through a support line of 26p only to come back above, I am expecting to see the SP keep retesting the 33.5 range and...
TLW has been respecting the drawn trend lines to the tee...IMO.
It keeps getting rejected at the major resistance of 33.4 (thereabouts) and sometimes crosses only to come back below. However the probablity of it crossing and staying above it is high, so those who are willing to take an early punt then it's a good time to BUY.
However I'm more on the cautious side...
It's struggling to cross that major resistance of the 52 MA. If it breaks the Daily trend and crosses support 23.5 then I'll be closing my Longs and sitting it out. I'm not hopeful TLW reducing it's debt and meeting its $1BN cash lquidity target. I'm really on the fence about this one.
Triangle break to the downside. Tullow is now still bearish after a downtrend which started 5 years ago and a triangle pattern which began in Dec 2015.
Possible entry level $1.32 *& Target price $1.50.
This offshore operator has some interesting upside possibilities.
The balance sheet ratios appear to be decent.
Stock price is extremely volatile, and good news often results in an outsized temporary gain.
Recent results have provided steady production growth.
Expect older fields to be sold to keep debt reasonable...
Showing signs of a breakout with a good risk return trade in my opinion .
Brent is at almost year highs both in GBP and USD terms
Forward curve hedging will in my view help Uk Energy companies outperform Brent in H2 2018 and into 2019 .
Value investors will no doubt be looking at the longer dated Brent curve which is substantially looking higher .
The stock price is close to a strong long term support and the Oil price remains bullish in the medium term. Tullow’s CEO and management stabilised the business between Q1-17 and Q3-17. Asset sales and efficiency goals helped reduce its debt balance and capital expenditure commitments to manageable levels. Tullow Oil is generating free cash flow since Q317. An...
