Anglo African pulls back off resistance levels #AAOG

It’s been quite a ride for Anglo African Oil and Gas (LSE:AAOG) shareholders since it floated on the London market just over a year ago. The past couple of months have seen a decent recovery off lows of 9p, with the stock hitting 15.75p last week. I highlighted this price area as a  strong resistance zone in my previous piece about Anglo African on ValueTheMarkets, and the 200 Day Moving Average (DMA) has indeed cried ‘none shall pass’. At the time of writing, the price has dropped back to 14.2p and may offer a good opportunity to those on the sidelines considering an entry.

I suspect a positive operational update is required to break the 200 DMA, but with potential newsflow imminent the wait is unlikely to be very long. As always with oil company operations there are plenty of risks, but with substantial upside on offer in the event of success with the forthcoming TLP103 drill, Risk-to-Reward remains enticing.

Author: Stuart Langelaan

Disclosure: The Author owns shares in the company mentioned above.

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