Maurel et Prom shares hit a 150-session low, RSI at 30
The oil producer retreats mid-session in a Parisian market that is nonetheless well oriented. The decline places it near the bottom of the broad index, while oil recovers some ground after the previous day's drop.
A price below its three moving averages, after a key level was broken to the downside
The share Maurel et Prom falls 2.62% to €7.26, in an SBF 120 that gains 0.58%. It ranks among the largest declines in the index, a few places from the bottom.
The stock has just broken below its lowest level of the last 150 sessions at €7.47, a level that now serves as support in case of a rebound. It trades 9.3% below its 20-day moving average (MM20) and nearly 16% below its 200-day moving average (MM200), extending a 10.3% decline over the week.
The RSI has dropped to 29. Over one year, however, the stock still shows a gain of nearly 50%.
The source of a series of recent declines also lies in the oil context: Brent trades at $96.06 and gains 1.5% intraday, after having fallen 13.2% since October 26. Maurel et Prom's share price has historically moved in line with Brent.
Nine-month production value up 32%, with Tanzania taking over
The stock had already broken below its €7.68 support on November 2. During the publication of its nine-month results on October 22, the group reported a production value of $521 million, up 32%, thanks to an average selling price of $98.8/b, up 40%.
Total production on an M&P share basis had risen by only 4%. The publication also mentioned the Kasa-1X gas discovery in Tanzania, with a potential of 50 Mcf/d at 100%, and the completion of the acquisition of Gran Tierra's assets in Colombia and Ecuador by the end of 2026.
Based on the consensus of covered analysts, the stock trades at about 5.6 times earnings for the current fiscal year. The next technical level to watch is resistance at €7.47, the former support that was broken to the downside.
