Rockhopper Exploration: Above 20p targets towards 30p

1 mins. to read
Rockhopper Exploration: Above 20p targets towards 30p

It has not exactly been an easy ride for shareholders of Rockhopper Exploration (LON:RKH). However, those new to the “party” might be interested at present share price levels.

It really is something to say that the share price of Rockhopper is as volatile as the newsflow, especially given that the explorer already occupies a very unpredictable space. Indeed, the best that can be said about this particular company is that it is usually not one which tracks the oil price too religiously, a state of affairs which might be described as a blessing rather than a curse.

As for where we are currently, one can see how there has been a decline from mid 2016 resistance through 40p, to roughly half this level as recently as December last year. The present position is that the shares are feeling the benefit of the higher support this month towards 20p, a bear trap rebound from just below 20p, and bullish divergence in the RSI window.

All of this goes to suggest that with as little as a weekly close back above the 50 day moving average, now at 22p on Friday, we could be treated to at least a decent intermediate recovery. Just how high this could stretch is currently indicated by the top of a rising trend channel drawn in from as long ago as November at 30p. The timeframe on such a move is suggested as being the next 1-2 months, especially in the wake of the Al Jahraa well in Egypt spudding.


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