Hurricane Energy PLC (LON: HUR) share price fell 3.93% following the recent rally triggered by the release of its half-year results and operations update on 14 October 2021.
The UK oil and gas company’s shares had rallied higher after reporting a surge in revenues to 124.5 million during H1 2021 compared to 81.9 million in H1 2020.
The oil firm made a pretax profit of $42.8 million compared to a massive loss of $307.8 million in the previous year, which boosted the rally.
However, the decline that started yesterday shows that some investors may be taking profits on their positions at a technically significant position, given that the shares have fallen back to the 4.405p support level.
As shown in this article, I identified this level in my last analysis of Hurricane Energy shares on 14 September 2021 when trading at 3.22p.
At the time, the oil company had just completed the successful buyback of 34% of its outstanding convertible loan notes at the cost of $62 million.
Hurricane Energy is currently on a positive trajectory and expects to produce between 8,500 to 10,000 barrels of oil per day during the next six months, starting on 1 October 2021.
The oil company is still exploring options to increase the production at its flagship Lancaster oil field, whose potential output was significantly reduced, plunging the firm into financial turmoil.
The firm is also counting on high crude oil prices in the global markets to fuel its higher earnings during the period amid high demand for oil as many countries grapple with oil shortages.
Investors should watch Hurrican Energy shares at current levels to see if the resistance level will hold over time, fueling another rally. Its shares have significant upside potential since they once traded as high as 64.67p in June 2019.
*This is not investment advice.
Hurricane Energy share price.
Hurricane Energy shares fell 3.93% to trade at 4.422p, falling from Monday’s closing price of 4.603p.
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