Tullow Oil Share Price Has More Upside in the Near Term
The Tullow Oil share price has started the year well, helped by the rising crude oil price. The TLW stock price is trading at 53p, which is the highest it has been since October last year. The shares have risen by over 28% from the lowest level in December.
Tullow Oil is a small-scale oil producer that is a member of the FTSE 250 index. The company explores and mines oil in some small oil-producing countries in Africa and South America. Therefore, as a smaller producer, the company is usually more sensitive to oil price swings than the likes of Shell and BP.
Tullow’s shares have risen because of the impressive rebound of the price of crude oil. Brent, the global benchmark, is trading at $85 while West Texas Intermediate (WTI) is trading a $83. This performance is mostly because of the expected demand because of the fact that Omicron is not as severe as feared.
Also, the recent deal by OPEC to continue increasing its supplies gradually has helped boost sentiment among oil producers. So, what next for the TLW shares?
Tullow Oil share price forecast
The four-hour chart reveals that the Tullow stock price has been positive this year. Most notably, the shares have managed to move above the key resistance at 50p, where it struggled to move above in November last year.
The stock has managed to move above the 25-day and 50-day moving averages. Therefore, the path of the least resistance for the stock is in the upside. By measuring the distance between the highest point in November and the lowest point in December, we can assume that the next key target for the stock is at around 57p. This view will be invalidated if the price moves below 48.82p.
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