Sound Energy: Above 50 day line targets as high as 120p

1 mins. to read
Sound Energy: Above 50 day line targets as high as 120p

While it may be the case that Sound Energy (LON:SOU) (or Sound Oil, as it used to be) was never quite an ugly duckling, there is little question this company has become a swan of quite grand proportions.

On the face of it, Sound Energy has offered a remarkably smooth journey over the recent past. The big transformation here of course was the Morocco angle, after quite a lengthy period playing the waiting game on Italy.

But it would appear that given the surprisingly massive potential of Morocco, and the stewardship of the company under CEO James Parsons being of the highest calibre, we are looking at a situation where Sound Energy is making the often difficult transformation from being a minnow with hope value, to a serious player.

Looking at the daily chart we see the two key events of the recent past – the way the stock smashed through 20p, and now the break above the 50 day moving average at 73p in the wake of the news drilling at Tendara will begin this month.

The gas project is set to blow the doors off for Sound Energy fundamentally, on which basis one would be calling the stock to as high as 120p at the top of a rising trend channel from July. The timframe on such a move is seen as being the next 3-4 months. Only a weekly close well below the 50 day line would really upset the long argument.

sou chart

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