The Etablissements Maurel et Prom SA stock (EPA: MAU) MAU is not a major oil producing company, as its main operations are in a few African countries, like Gabon, Tanzania and Nigeria. The company also focuses on production of hydrocarbons, which are used as a combustible fuel source. MAU has a Beta of around 1.2173, which means that it is more volatile than the broader market, which makes the stock risky. However, a pick-up in oil prices might help MAU get back on the right track.
Looking at the technical picture on the 4-hour chart of MAU, we notice that the share price is still within a recovery mode, after it got hit severely at the end of February and then found support near the 1.300 area. The stock is currently balancing above a short-term upside support line taken from the low of March 23rd, however the share price still remains below April’s high, at 1.725. For now, we will take a cautiously-bullish approach and wait for a confirmation break above April’s high, before examining higher areas.
A push above the previously-mentioned 1.725 barrier could attract more buyers into the game, who may help the share price to rise further. MAU might then drift to the 1.860 obstacle, a break of which may send the stock to the 1.965 level, marked by the high of March 10th.
The RSI and the MACD seem to be in support of the above-mentioned scenario, as both indicators are pointing higher. In addition to that, the RSI is above 50 and the MACD continues to balance above its trigger line, while approaching zero.
Alternatively, if MAU breaks the aforementioned upside line and falls below the 1.545 hurdle, which is the lowest point of this week, this could temporarily spook new investors from entering. That may send the share price further south, possibly targeting the 1.435 obstacle, a break of which could clear the path to the 1.305 level, marked by the lowest point of March.
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.
Copyright 2020 JFD Group Ltd.