Hurricane Energy: Rising trend channel pointing towards 70p

1 mins. to read
Hurricane Energy: Rising trend channel pointing towards 70p

I have to admit that after conducting rigorous research for today’s coverage of Hurricane Energy (LON:HUR), my impression that this was a company worth around £50m turned out to be rather on the low side.

It is interesting that the latest stellar share price run has left the company with a market capitalisation of over £660m, making it a decent second line explorer. This is hardly surprising given the latest newsflow surrounding the company, which centres on estimates regarding the size of the flagship Lancaster field.

So far we can choose from between 300m barrels and as much as 1bn. Perhaps the only worry with this is that the last time 1bn barrels was mentioned it was regarding the Horse Hill basin – and that is still something of a work in progress.

Getting back to the technicals of Hurricane Energy, the thing that is most pleasing here is the clear strength of the momentum being served up. This notion is backed by the intermittent gaps to the upside, within a rising trend channel which can be drawn in from as long ago as May last year. The top of the channel is currently pointing as high as 70p, a destination which one would hope could be reached as soon as the next 4-6 weeks.

In the meantime, with the stock approaching overbought on the RSI scale one would be looking to buy any dips towards the floor of the rising trend channel at 49p – level with the 50 day moving average. Only a weekly close back below the 50 day line would really spell danger for the bulls at this stage.

hur chart

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