The Harbour Energy share price has dipped on the day, as investors reacted negatively to the news of the proposed merger between the company and Neptune Energy Group.
According to a Bloomberg report which cited sources close to the situation, the merger could produce one of the largest European oil and gas companies, with a combined value of $10billion.
Talks are said to be at the initial stage, as Neptune Energy remains open to other options. Not even a climb in crude oil prices on the day could shore up buying interest in stocks of Harbour Energy, which remain sharply lower this Wednesday.
The Harbour Energy share price is down 4.26% on the news.
Harbour Energy Share Price Outlook
The intraday dip on the Harbour Energy share price action looks set to test the lower boundary of the rising wedge pattern on the daily chart. A breakdown of this border completes the wedge and opens the door towards the 345.2 price mark (27 January and 21 April lows), acting as the initial support. A continuation of this move below this support targets 303.4, which could be the completion point of the measured move. 276.6 (cluster of lows on 8-19 October 2020) comes into the picture if the slide continues.
Conversely, a bounce on the wedge’s lower border could set up a chance for bulls to attack the 394.0 resistance (11 February, 20 May and 7 June lows). A break above this level also shatters the wedge’s upper border and invalidates the pattern. Bulls would then have clear skies to aim for 437.8 (12 May/2 June highs), after which 459.6 becomes the additional target to the north.