Like other energy companies, the French oil group TotalEnergies is currently benefiting from high energy prices.
Although the price of oil has fallen by over 30% since the last high, TotalEnergies’ stock remains in an upward channel, falling only 12% over the same period.
The company is also currently investing in new gas field projects: Together with Wintershall Dea and Pan American Energy, $700 million was invested in an Argentine project in which TotalEnergies has almost 38% shares.
On the other hand, the Group has problems with a pipeline project in Uganda. With the EU Parliament having massive concerns about the project due to observed human rights violations and environmental damage, and wanting to prevent Total Energies from participating, the government of Uganda threatened to find a new partner for the planned African crude oil pipeline if French oil major TotalEnergies bowed to an EU Parliament resolution and pulled out of the $4.5 billion project.
The share, which has been in an upward channel since November 2020, has corrected to the downside within the channel. If the price enters a recovery movement again in the next few days and does not break out of the channel to the downside, this could represent a buy signal. The next resistances for such a recovery movement are then at 52.35€ and 57.28€. The channel top, currently at €61.00, could intercept the upward movement in the further course.
Otherwise, a downward breakout from the channel could first entail a major corrective recovery. I see the next relevant support levels there at €42.61 and €36.22.