Is this oil explorer a top recovery play?

88 Energy (LSE:88E) and some GBP:USD thoughts too

88 Energy (88E) has featured in our email and it’s not hard to understand why. The share price appears to be adhering to some of our thoughts last year and an update appears merited.

For 88E, movements since August last year carry the suggestion a glass ceiling has formed at 2.9p and unusually, this bother us. Generally this “glass ceiling” nonsense does prove a reliable harbinger of good times ahead but in the immediate case, our software essentially is being cautious.

The suggestion given is not to trust a rise unless the price now starts trading above 3p as we’re looking for an initial 3.5p with secondary, if exceeded, at 4.5p and a pretty firm requirement we stir the tea leaves again.

  • Plotting 88 Energy’s post-crash recovery

Our problem with the 2.9p glass ceiling hails back to all the circled manual manipulation gaps and the spanner they tend through in the works when trying to plot logical growth curves.

In the case of 88E, if we simply go by the point at which the share closed, we should be advising the price intends 4.5p as a major point of interest on the current cycle, requiring a slip below 2p to trash the potential. Long term above 4.5p and we can calculate 6.15p, but frankly these gaps bother us rather a lot.

Source: interactive investor          Past performance is not a guide to future performance

GBP:USD

This pairing is regarded currently as heading to $1.3090. It needs better than $1.3415 to trash the prospect, this being from a near term perspective.

From a big picture perspective, it actually needs above $1.42 before we cease expecting $1.3090 to make a guest appearance. Additionally, should $1.3090 break, it remains with a “must bounce (hopefully)” bottom at $1.24.

Alistair Strang has led high-profile and “top secret” software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know “how it worked” with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

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