Urals Energy: Technical target towards 10p

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Urals Energy: Technical target towards 10p

Given how “close” Vladimir Putin’s country is to the West these days, even playing King Maker in the recent U.S. Presidential elections (allegedly), it would appear churlish not to look at a company which has its heart in the land of the Russian Bear.

I am uncertain as to the nature of the geopolitical relationship between Russia and the United States these days. Presumably, this will depend on what, if anything, will stem from the results of investigations into President Trump’s victory in November. Perhaps rather more controversially, it may be said that if Trump had not won the Dow may have been rather lower than the 21,000 zone which it is trading at now, lending credence to the saying that “every cloud has a silver lining”.

As far as Urals Energy (LON:UEN) is concerned it may be noted that the shares have consolidated well in the wake of the announcement earlier this month regarding  plans for Kolguyev Island, and for the South Dagi licence area on Sakhalin Island. It is to be assumed that approval for both these zones would drive forward the company’s drilling hopes and prospects considerably.

As far as the technical picture is concerned, as derived from the daily chart, we are looking at a situation whereby one can assume shares of Urals Energy have been in a rising trend channel since as long ago as the beginning of 2015. The assumption to make now is that provided there is no weekly close back below the 50 day moving average at 4.91p, the upside here could be as great as the 2015 resistance line projection at 10p. The time frame on such a move is regarded as being the next 3-4 months.

uen chart

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