Echo Energy’s (LSE:ECHO) sister company Coro Energy (LSE:CORO) has been drifting as investors await news on deals and potential acquisitions. If Echo’s recent progress is anything to go by, things could get very exciting over at Coro in due course.
The company acquired Sound Energy’s Italian assets and successfully raised £14m in an oversubscribed placing in late January at a placing price of 4.38p. Today the stock is sitting at a significant discount to that fundraise at just 3.2p having retraced a little after its recent bounce off 3p. Chartwise the stock looks poised to climb again having put in a higher low.
Of course, newsflow will be the main driver for a rise, but technical indicators to look out for are regaining ground above the 50 Day Moving Average (DMA) – currently around 3.55p, a close above the 3.85 area, with an initial target of that placing price of 4.38p.
A lot of shares have been issued at 4.38p so expect headwind beyond there until the overhang of the fundraise clears, but at least at these levels, Coro appears to offer some potential immediate upside as anticipation of news builds.