It may appear to be somewhat churlish looking at an oil & gas explorer on the same day as the latest OPEC meeting in Algiers, but it would appear that the set up at Tullow Oil does merit investigation on a technical basis.
Tullow Oil (TLW): Trend channel target at 300p
One of the clichés associated with the stock market is the phenomenon of stocks or markets climbing a wall of worry. This would certainly appear to be the case for Tullow Oil, a company which fulfilled the dreams of “punters” in the sector by becoming a fully fledged blue chip company, but which has rather been on the back foot in recent years. This state of affairs was of course not helped by the crash in the Crude Oil price a couple of years ago, and as is so often the case, it has taken a while for the shares to regain their composure. But at least what can be said now as we approach the fourth quarter of 2016 is that we are looking at a rather robust charting position, something which is said in the wake of the July-August bear trap rebound from below the 200 day moving average, now at 207p. It may also be noted that since the summer we have an island bottom reversal based around the 200 day line, a setup which should be enough to deliver decent upside over the next 1-2 months. The assumption to make is therefore that while there is no end of day close back below the November price channel floor/200 day moving average we should be treated to a decent push towards the 2015 resistance line projection, currently pointing as high as 300p.