Harbour Energy (LON: HBR) share price has been in a downtrend since the start of this week. The shares of the oil and gas company had a major bounce at the end of last week, but now the gains are fading. The latest analysis reveals that the stock has rebounded strongly from its historic support.
The FTSE 100 index fell on Tuesday once again after closing its Monday session in the red. Till press time, the benchmark of UK shares was down 0.12%. Harbour Energy shares were also down for the day as they slid 3.27%. The negative price action can be attributed to a drop in oil prices.
In the recently held OPEC+ meeting, the major oil producers agreed to extend the production cuts to 2024. In addition, Saudi Arabia also announced to decrease its production by another 1 million barrels voluntarily. Oil prices initially surged on the news but soon plummeted as the growth concerns took over.
This led to a sell-off in the Harbour Energy share price, which was recovering from its 3-year lows. The next week’s FOMC meeting in the US, together with the release of May 2023 CPI data, will keep the oil price in check throughout the rest of the week.
The latest technical analysis of LON: HBR chart shows that the stock has recently retested its October 2020 low of 217p. This has resulted in a strong bounce which is not surprising at all. The bullish divergence on the RSI and MFI indicators validates this bounce.
Therefore, if Oil prices remain stable, Harbour Energy share price forecast can be bullish for the coming months. The decisions of the US Federal Reserve and the Bank of England will be the major factors affecting the price action of Oil stocks.
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This post was last modified on Jun 06, 2023, 12:35 BST 12:35