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Has Serica Energy’s share price hit support? (SQZ)

Last November, the valuation of Serica Energy (LSE:SQZ) rocketed after it updated the market on its acquisition of BP interests in three fields in the North Sea. The share price almost quadrupled to 93p by January followed by a gradual pullback since the peak. As is always the case with these moves, trying to pick the right moment to enter (or perhaps re-enter) the stock can be tricky. Serica saw a positive reaction to its recent operations update earlier this month but has since continued to fall. However, looking at the chart today, there are green shoots of a potential turnaround with a possible support level off a trendline going back to April last year.  It’s not necessarily a strong support level by any means, but combined with the Relative Strength Index (RSI) indicating the stock is heavily oversold, it’s a contender.

There’s every chance the price may fall further, but for those excited about Serica’s potential, this could prove to be a good entry.

Author: Stuart Langelaan

Disclosure: The author of this piece does not own shares in the company mentioned

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