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

By Patricia Miller

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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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Serica Energy

Author: Patricia Miller

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.