Yes this company is currently oversold from a technical perspective. The 14 day rsi is issuing a bullish divergent buy signal at the moment after a recent "herd running for the hills seloff".
Fundamentally the sell off was inspired by a few factors:
1} Woodside (who are in a joint venture agreement with Global in Kenya) claimed there was only a 3% success rate in offshore exploration. The company refuted these figures and produced evidence claiming a 20-25% success rate is the norm
2}Woodside have had trouble securing an oil rig for the Kenya site and pushed forward the date for drilling until second quarter next year.
3}Skittish investors/traders moved out of oil companies as the oil price corrected.
Now that the oil price is moving higher attention is now refoccusing on the Energy sector. Globals recent announcement of greater prospects in its offshore licences and its interest in Falkland Gold starting to gather momentum with the second drilling rig in place and first assay results due out in 3-4 weeks should see this company's share price improve in the future.
Please check all the above rather than take my word for it - the info is all in the ASX releases. The company's directors are also happy to answer any queries.
Good luck to any holders
GBP Price at posting:
0.0¢ Sentiment: None Disclosure: Held
