Capricorn Energy share price has been in a strong bullish trend in the past few months. The rally has been boosted by the elevated oil and gas prices. Also, the CNE stock price has rallied as the planned merger with Tullow Oil nears. It is trading at 234p, which is about 92% above the lowest level in November last year.
Capricorn Energy earnings
Capricorn Energy is a relatively small oil and gas company that has operations in Africa and some Asian countries. The company reached a deal to merge with Tullow Oil in a bid to create a large oil company focused on the African continent. On Tuesday, the firm said that it was committed to the merger agreement.
At the same time, the firm said that it was also considering a number of expressions of interest relating to those strategic alternatives. This means that the firm could abandon its merger agreement with Tullow in favor for a buyout. As a result, this would be a more bullish outcome for the company.
Capricorn Energy also said that it was preparing to return over $500 million to shareholders after the company received a tax refund from India. The firm finished the first half of the year with a net cash of $631 million. It also decided to upgrade its forward guidance for oil production from 33,000 barrels of oil per day to 36,000 barrels.
Therefore, Capricorn Energy share price is rising as investors cheer the strong performance of the company’s business, high oil and gas prices, and a potential for a bigger acquisition.
Capricorn Energy share price forecast
The daily chart shows that the CNE stock price has been in a strong bullish trend in the past few months. Along the way, the stock has remained above the ascending trendline shown in green. It has also moved above the 25-day and 50-day moving averages. It is also slightly above the important level at 231p, which was the highest point on April 6.
Therefore, the Capricorn Energy share price will likely continue rising as buyers target the key resistance level at 250p. A move below the support at 220p will invalidate the bullish view.
