Further Down Moves Ahead For Talisman Energy Inc. (USA)(NYSE:TLM)


Dallas, Texas 04/23/2014 (FINANCIALSTRENDS) –  Talisman Energy Inc. (USA)(NYSE:TLM)closed the day at $610.80 up 0.93% over the previous close. The candlestick pattern in the daily charts has formed a harami pattern signalling a bearish reversal. The RSI (14) at 64.09 coming down from 70 a few days ago indicates downside momentum. The fast stochastic (%K) at 84.34 has crossed down the %D at 87.47 and is to go down from overbought levels for a short term. The past week has seen a small uptrend and the MACD (12,26,9) has made a zero crossover. A signal crossover in the coming weeks will indicate an uptrend in the intermediate term. For the intra-day the signal is bearish, confirmed by candlestick harami, and the call would be to sell for target $10.48 (R2) with stop-loss at $11.00.


(Figure): Daily chart for Talisman Energy Inc. (USA) (NYSE:TLM)

The weekly charts of Talisman Energy Inc. (USA)(NYSE:TLM)indicate a long downtrend starting from August 2011 and still continuing. The exponential moving average (200 day) has been acting as a resistance to the price. As long as the price does not breakout above $12.70 (EMA 200) bearish trend is expected to continue. The intermediate trend (1-2 weeks) is bullish, signalled by MACD zero crossover and price looking to break-out the EMA (100 day) at $11.09. The intermediate positions will be for target $11.66(Pivot point) with stop-loss at $9.80 (S2). The long term trend (2-3 months) is still bearish with extrapolation of the trend line on the weekly charts indicating price down-swing up to $8.65 (S3) with a stop loss at $12.00. A price breakout over the EMA (200) at $12.70 will signal a trend reversal contrary to current indications.


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The management of the Calgary based upstream Oil & Gas CompanyTalisman Energy Inc. (USA)(NYSE:TLM)announced last week about the company’s restructuring attempts to improve growth. The company is still loss making with estimated reserves of 1.64 billion barrels of oil. The March quarter results will be declared on May 07, 2014.