Harbour Energy plc : Downward momentum!
Entry price | Target | Stop-loss | Potential |
---|
GBX 145.9 |
GBX 0 |
GBX 164.3 |
+100% |
---|
Premier Oil is experiencing a downward trend that could push it toward GBp 120.2, corresponding to a mid-term support.
From a fundamental viewpoint, the group is in a fragile financial situation. Analysts have recently downgraded their forecasts for earnings per share. This indicator is often a precursor of a declining profitability and a worsening climate of investors' confidence.
Graphically, we can see that the stock is in a bearish trend with decreasing moving averages, which serve as slant resistance. Now, shares are in contact with the GBp 150.3 resistance and should act as a stepping point. The 20-day moving average crossed downward the 50-day moving average which confirm our scenario.
Investors could take a short position in Premier Oil to target GBp 120.2. They will also place a stop loss above the GBp 150.3 resistance area, level that would invalidate our bearish strategy.
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