Recovery after a huge slump. Can Tullow Oil carry this momentum ahead too?

• The stock has seen a major fall from past August destroying almost 30% of the investor’s wealth.
• The stock picked up a buy movement from mid May making a good recovery after its huge dump.
• Buyers yet look strong and more growth is expected for the stock in the upcoming months

The company was founded by Aidan Heavey in 1985, in Tullow, Ireland, as a gas exploration business operating in Senegal. Tullow listed its shares on the London Stock Exchange and Irish Stock Exchange in 1986 and the FTSE 100 index in September 2007. The company has had a stable cash inflow over the years with a bumpy profitability. 

Technical analysis for the stock-

Although the stock has seen a good recovery recently, it still needs to perform more so as to recover the investors’ money. In recent days, the stock comfortably breached its support at 31.14£ and has been trading strong at current levels of 36£. 

If the stock continues with this momentum, the next target at 39.4£ can be seen getting achieved within a few days. \

On the down side, 34.1£ stands as a very strong support. Chances for the price to breach this level are very less but if that does happen, our next support at 32£ will act as the next target.

A strong buying momentum with a bullish support trendline is emerging in the stock recently. The stock has also comfortably branched its near support which means buyers are entering and have faith in the technicals. 

37.5£ was the last high the stock created and thus stands as our next resistance. Looking at the current movement, we should expect a good breakout for this levels in the upcoming month or even before. 39.4£ would be the next target in the case then, People looking to enter long can enter at the current levels if the buying volumes are still intact. 

Most indicators are currently bullish predicting a probable upward movement for the stock. Going by the indicators and the current momentum in the stock, the next 1-2 months can see huge growth in the price if there is no negative news regarding the stock. 

Analysts predict the price to cross 50£ by the end of 1 year which is more than a 40% growth compared to the current price making it a good return for the investors.

Conclusion-

The stock has seen a good buying momentum in the past 1 month and the same is expected to continue for the upcoming 1-2 months too. Current levels look good for entering into the stock for time of 6-12 months.

Important technical levels-

Major support levels- 34.1£ followed by 32£.

Major resistance levels- 38£ followed by 39.42£.