$CNOOC(00883)$ has closed at all time high of HKD16.8 today with pretty strong volume of 133mil shares traded. Not bad considering that it started the year 2024 at HKD 13.
I believe this rally has legs, with the key being healthy liquidity flowing into the commondity sector , and energy in particular. The weekly chart of WTI crude suggest a slow grind up for oil price, and oil price is the primary driver for $CNOOC's revenue and profits. I have previously optioned that oil prices are heading upwards, and I willl not be surprised if it reaches US$95 per barrel in the year.
Secondly, although not as critical, we are also seeing a potential market recovery for $HSI from recent lows. The market has for months unend being making lower lows and there is some hope that the trend has begun to turn. However this is by no means but if so it will be very strong tailwinds for the stock. In fact the entire energy sector on HSI and in particular the '3 barrels' has seen significant appreciation in the past 5 weeks.
For anyone who has taken positions on $CNOOC, it would not be wise not to have an exit strategy. What is yours?
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