The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
OSH upgraded its full-year output guidance to between 17 and 20 million boe, up from 14.5 to 17.5 million boe. Having commenced production early, OSH is in a good position to increase production and lower costs. The share price rise over the past few months suggests investors were anticipating some good news from the company. However, some brokers haven’t taken too kindly to the share price appreciation and are actually encouraging investors to take profits and possibly buy Santos instead, which has underperformed its peers this year.
From a trading perspective, the stock is in a great uptrend and continues to knock through all barriers. While I’m not a fan of chasing the price higher at these levels, I would prefer buying pullbacks into the $9.30 region. From there traders could then look to ride the price higher for a potential retest of the record highs. Stops could be placed below $9 which is a key support level.