JAKARTA – Technical analysis from PT Ina Sekuritas Indonesia outlines the price direction of PT Energi Mega Persada Tbk (ENRG) shares on Monday (2/3).

Sentiment stemming from the escalation of tensions between Iran, Israel and the United States has increased the risk of supply disruptions in global energy markets.

The Strait of Hormuz remains a crucial route for global oil and gas shipments and is under Iran’s control.

Although Iran has not officially closed the strait, a number of tanker operators have suspended oil and gas shipments through the route amid the ongoing conflict.

As a result, oil commodity prices have climbed above the USD 70 per barrel level.

ENRG shares, the Bakrie Group’s arm in the oil and gas sector, are currently in a bullish trend and have broken out from their highest resistance level.

According to the analyst, the trend opens up the potential for gains towards resistance at IDR 1,960 and IDR 2,040, with support at IDR 1,690.

ENRG operates in the upstream oil and gas industry, covering the exploration, development and production of crude oil, natural gas and coal bed methane.

The Bakrie Group-listed company operates in Indonesia and Mozambique, with production predominantly focused on gas.

For further details, the technical analysis of ENRG shares can be viewed in the following video. (DK/ZH)

Chart: Bloomberg