Brent Crude was hovering within the range of USD 60-70 for Q1 2018 and has since then continued to propel northward after the conclusive break of USD 70 level.  

As for immediate focus, investors are likely looking forward to 3Q2018* results, which should be due within the next 2 weeks.  This is the first quarter where the results for North Sabah assets would be consolidated in the book following the completion of the deal on 31/3/2018.   Things to look out for are quantum of negative goodwill on consolidation for Sabah assets, average daily output for Anasuria field and most critically, profit level for Sabah oil field.

On technical outlook, today’s (16 May 2018) close is at 0.945 which is right on the immediate peak high. Next support around 0.89/0.90, a confluence of 100D SMA & trendline support.    

There’s a potential inverse Head &Shoulders pattern, provided it stays above 0.89/0.90 with target around 1.23.  However, the journey would be treacherous given the multiple resistance levels along the way…1.00, 1.065, 1.10, 1.17.

* Note: FY2018 starts from July 2017 – June 2018. 

Disclaimer:

A sharing of personal investment idea and thought and is not a recommendation to buy or sell.