Enquest: Imminent triangle breakout towards 45p

It is perhaps somewhat strange that OPEC and friends (Russia) have kind of managed to convince the markets they are able to control Crude Oil production enough to stabilise the underlying commodity. But at least Oil explorers seem to be on the front foot share price wise.

Enquest (ENQ): Imminent triangle breakout towards 45p

What can be seen on the daily chart of North Sea focused explorer and producer Enquest is the way that this year to date has been the one where the shares have shot back into bull mode. The first giveaway that this was set to happen occurred in January with the exhaustion gap reversals. This was followed by a gap through the 50 day moving average then at 15p in March, with the big trend changing signal being the beak of the 200 day moving average at 25p in April. Such a very positive series of technical events in combination rarely fails and this has proved to be the case at Enquest. Indeed, the only negative has been how long it has taken for the stock to consolidate the March – April rally. However, it does look as though the consolidation process is finally over, with the trigger likely to be a break of the red April resistance line at 29p. Given how long the holding pattern has been in place, and how narrow the range of late, one would be looking to a relatively strong reaction to the upside. The favoured destination over the next 1-2 months is regarded as being as high as the top of a March rising trend channel at 45p, especially while there is no break back below the 200 day moving average.