The Tullow Oil share price has been under intense pressure in the past few weeks even as oil prices remains substantially higher than last year. The stock is trading at 44.6, which is about 32% below the highest level this year.
Tullow stock pressured
Tullow Oil is an oil and gas company that focuses on Africa and South America. The company holds about 40 licenses in countries like Kenya, Gabon, Namibia, Argentina, and Peru.
It has a total market capitalization of more than 635 million pounds and is a member of the FTSE 250 index. In 2020, the company’s revenue dropped to more than 1.396 billion pounds and lost more than 1.27 billion.
The Tullow Oil share price has had a mixed period this year. The stock rose by more than 300% between October and March. Since then, the stock has declined by about 32% as concerns about the recovery of the global economy.
In its July trading statement, Tullow Oil said that its production in the first half of the year was about 61,200 barrels per day. It then lowered its full-year average to be between 55,000 and 61,000 barrels because of its asset sale of its Equitorial Guinea assets. The company will provide an update about the Kenyan assets later this year.
Tullow Oil share price forecast
The daily chart shows that things are not good. The Tullow share price formed a double-top pattern at 65.2p level. The neckline of this double-top pattern was at 44.65. At the same time, the pair has formed a bearish flag pattern that is shown in blue.
Notably, the 50-day and 100-day moving averages have made a bearish crossover. With the stock being at the 38.2% retracement level, the next key point to watch will be the 50% retracement at 39.62p and the 61.8% retracement at 33.42p. On the flip side, a move above 50p will invalidate the bearish view.