This oil share could gush to multi-year highs

Chariot Oil (LSE:CHAR) and Brent Crude

We’ve just about reached our wits end with the Dow, so it was time to sit back and chill while running the numbers against every single Dow constituent. And as a result, we calculated the Dow should be heading to 25,335 points next, this being a point where some reversal is probable.

We should warn, this method of calculating a target is new and while it resulted in a sensible sounding ambition, we’ve never tried this concept before due to the requirement of assuming time frames correctly against each share. Our “normal” caveat is to duck time frames due to the ritual humiliation they inflict but in this case, we either abandon the Dow Jones or alter our approach.

As for Chariot Oil (CHAR), the tea leaves don’t entirely stink. The current situation is a bit odd with the price calculating as heading to 25.5p with any movement now bettering 23.7p. While utterly insignificant, the implication should 25.5p be exceeded is of continued growth coming to an initial 32.5p with secondary, if bettered, at 51p.

Visually, this is quite a big deal, taking the price finally to an area of new highs, along with the hope from a heck of a lot of people the share will “cover the gap”. Unfortunately, we’re not yet showing sufficient impetus for such a scenario as, even with a stonking great news release, the best we could sanely hope is around 65p. For it all to go wrong, the price needs weaken below 11p!

While we’re not promising anything, it certainly appears this particular share price is in some way mimicking the current share in crude oil prices as currently there’s a heck of an argument favouring 69 USD as the next major target against Brent. Our longer term secondary comes along at 86 USD, almost promising a bonk against the long term downtrend sometime in mid-2018.

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.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, Shareprice, or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Source.