Pressure is on Oil & Gas stocks to buck the recent decline

I am seeing similar chart patterns mimicked in many global Oil & Gas equities.

Below is some commentary around Woodside Energy’s (WPL.AX) price action.

WPL’s failure to hold $24 wasn’t good although holding a $22.30 support deemed to be important. Today, the stock is challenging a downward sloping resistance line and needs to break and close above $23.35 in order to increase probability of a visit back to $24 and above. Failing to break $23.35 means the 50 day moving average crosses below its 100 day moving average and likely heralds in a new short term bear trend with a break below $22 suggests a visit to $19.

This all coincides with the acute point where Brent Crude is trading. Brent is edging towards a new bullish move and needs to trade above $67.50 to add to this case however a break below $64.50 negates such a move.

April 28, 2021
by Rob Zdravevski
rob@karriasset.com.au