PetroChina Company Limited (NYSE: PTR) is Asia’s largest oil and gas producer. Also, it is one of the most profitable companies in that region. The company was formed in 1999 and it inherited most of its assets and liabilities after the restructuring of the State-owned China National Petroleum Corporation, which owns more than 80% of PTR. Due to its nature, the company heavily depends to the global oil prices, which recently pushed above the 50-dollar mark, helping PetroChina to recover some losses made in the first half of 2020.
The technical picture of the PetroChina Company Limited ADR stock, shows that recently, the share price moved higher, hitting the November 2020 high, near the 34.18 hurdle. However, PTR failed to move above that barrier straight away and had retraced lower somewhat. On the positive side, the stock continues to run well above a short-term upside support line drawn from the low of October 19th. Although the near-term outlook remains slightly on the positive side, in order to get a bit more comfortable with the upside, we would prefer to wait for a break and a daily close above the aforementioned 34.18 barrier first.
If, eventually, PTR makes a move above the 34.18 territory, that will confirm a forthcoming higher high, leading to some higher areas. Our next target might be at 36.15, marked by the high of August 17th, where the price may also test the 200-day EMA. Initially, the stock could get held there temporarily, but if the buying activity is still strong, the next possible aim might be at 38.11, marked by the highest point of July.
Although the RSI is currently pointing lower, it remains above 50, which still shows upside speed. The MACD, on the other hand, is a bit more reassuring, as the indicator is sitting above zero and its trigger line, while pointing higher. This supports the above-mentioned upside scenario.
Alternatively, if the share price falls below the 32.65 hurdle, marked near the highs of December 2nd and January 12th, that may clear the way for a larger correction lower. PTR might then drift to the 31.85 zone, a break of which could set the stage for a test of the 30.07 level. That level is marked by the current lowest point of January and is near the previously-discussed upside line, which could provide additional support.
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