The worst sector in trading yesterday was energy, following a tumble in oil prices. (At the moment oil prices don’t rise or fall, they roar or flop). Yet gas producer Oilsearch managed a gain. Yes, it announced the start of a biomass fuel project, an important strategic development, but that’s a $15 million project for a $10 billion company. What gives?
The answer may be technical. After a sustained period of pressure, the OSH share price may have turned the corner on the daily chart below. Five straight days of gains, a “rounding bottom” formation and a MACD that crossed upward well below the zero line are all possible technical buy signals.
In my view OSH is a prime long term investment. If gas is the answer in a carbon constrained world, Woodside and OSH should be on investor radar. Note how the last four lows are all “spike” lows. The share price slides to appoint, but once it turns it moves rapidly higher. This may be an indication of investors willing to pick up OSH at bargain prices for the long term- and might be buying right now.