Third wave breakout due for Lundin Petroleum
The stock of Swedish Oil company Lundin Petroleum (LUPE:xome) has a very interesting structure emerging.
With help from time cycles, we have managed to pinpoint Elliot wave and Gann-pivots, an important peak that was set on June 9. The peak marked an end to the up-leg that started on January 13 earlier this year.
The up-leg into the June peak took 148 days, which stand in a 180 degree cycle alignment with the 54 days of corrective price action into the August 2 low.
The sum of the cycle off the January lows into the correction lows in August marks a 360 degree alignment to the up-leg peaking in June off the January lows. The low set on August 2 now appears very important for bullish prospects.
Management and risk description
The SEK 151 is important, a daily close above this level would be indicative of higher prices going forward and will be our trigger. The stop is a daily close below SEK 145 and our targets are SEK 157, SEK 163 and SEK 169.
Entry: Buy a daily close above SEK 151
Stop: Daily close below SEK 145
Target: SEK 157, SEK 163 and SEK 169
Time horizon: About four weeks for the highest target