iGas share price has been in a strong bullish trend this year as investors focus on the soaring gas prices. It has also been supported by substantially elevated crude oil prices. IGAS stock was trading at 85p on Friday, which was about 500% above its lowest level this year. Its market cap has soared to more than 100 million pounds.
Fracking hopes
iGas is a small but fast-growing energy company with operations in the UK. The firm has operations in Scotland, North West, East Midlands, and Southern England. In its recent financial results, iGas said that IRS revenue rose to 30.5 million pounds from the previous 16.6 million pounds. Its operating costs also rose to $42.5 per barrel while its net debt reduced to 9.7 million pounds. The company’s production averaged 1,865 boepd in the first half of the year while the company boosted its production outlook.
iGas share price continued rising as investors reacted to the new administration by Lizz Truss. In her statement, Truss said that she was fully supportive of UK’s energy sector. She also said that her government will pressure companies to start fracking in a bid to boost production. This is a notable thing for iGas since it is one of the leading players in the fracking industry in the UK.
Still, some industry watchers are sceptical about fracking in the UK. In a statement, Chris Cornelius, the founder of Cuadrilla Resources, said that UK’s geological condition was significantly different from that of the US. He said that fracking would only be on a smaller scale in the long term.
iGas share price forecast
In my last update on iGas, I hinted that the shares would likely continue soaring. iGas share price has been in a strong bullish trend in the past few weeks. As it rose, the stock moved above the important resistance level at 48.8p, which was the highest point on April 6. On the four-hour chart, the shares have moved above the 25-day and 50-day moving averages.
The Relative Strength Index (RSI) has moved above the neutral point. Therefore, iGas stock price will likely keep rising as bulls target the next key resistance level to watch will be at 120p, which was the highest point this year. A drop below the support at 68p will invalidate the bullish view.
