Sound Energy

Tuesday, 5th June 2018 10:08 - by Rajan Dhall

Shares in Sound Energy have not really performed of late and the old favorite has seems to be somewhat out of fashion. But the positive news flow may be starting to kick in just as the share price is at these depressed levels. The Co. this morning announced receipt of Ministerial approval of the Sidi Moktar Onshore Petroleum Agreement awarded to the Company in February 2018. 

In this agreement, Sound has a 75% operated position, covers some 4,499 square kilometres. The remaining 25% position in the venture is held by Morocco's Office National des Hydrocarbures et des Mines.

From a technical perspective on the weekly chart it looks like we have rejected lower level. Price stopped at the 76.4 Fibonacci level which was close to the 34p area on the higher timeframe (zoomed out chart). Now if we see a move higher there are a few levels to contend with and 38.50p looks strong but the main level is higher at 50p. On the downside the next level is 26.66p which is the high of the consolidation before the price shot up in July 2016. I personally believe if we break past 41.50p with good volume we could see a push to higher ground.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.