Union Jack Oil (LSE:UJO) is back down to support levels and is now available to buy below 0.09p – That’s a shade over the recent placing price of 0.085p. Last week the company announced its farm-in for an additional 10% interest in the drill-ready Biscathorpe Prospect, with drilling expected later this year. While there’s always the risk the stock could make new lows, particularly in the current uneasy macro conditions, an entry at these levels could offer good upside with anticipated newsflow.
The stock is now sandwiched between the bottom of its price channel and ever lowering moving averages. Union Jack’s share price will look much stronger with a few of those under its belt. It’s recently been taking a good look at its 20 DMA which is a start. The 200 DMA is currently at 0.13p which would make a decent first target for price recovery.