Rockhopper Exploration: Above 2015 floor targets 40p plus

1 mins. to read
Rockhopper Exploration: Above 2015 floor targets 40p plus

It should be admitted that the Rockhopper Exploration (LON:RKH) journey has not exactly been a quick or easy one for its fans. However, at least from a charting perspective it may be that going into 2017 we are looking at a recovery situation.

Given that cash is supposed to be king in a number of areas of life, it could very well be suggested that Rockhopper Exploration is in a good place at the end of 2016. This is because it is sitting on £65m in cash and has a market capitalisation of £105m.

Unfortunately, considering that the Sea Lion field in the South Atlantic required over a £1bn to get it to an oil field destination, we might regard this stock as being a classic long term, and long haul, investment. But of course, there is more to the stock market than just the fundamentals. Timing is key, at least in terms of the price action, and here there is a decent near-term message.

Shares of Rockhopper have delivered quite a sharp rebound from not only 20p, but also the former November floor at 21.75p. The stock has settled well above the latter figure, with only a break back above the old 24p 2015 low awaited on a weekly close basis before we can target a return to the main 2016 highs through 40p for Q1 2017. Only a sustained break back below 20p would really threaten the recovery argument here.


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