Diversified Energy Company Plc (LSE:DEC) and the collapse of gas prices

#Gold #SP500 This one is a little complex, thanks to the company pulling a 20:1 share split stunt. When we previously reviewed the share in 2023, we’d what we called a “grim argument” which produced the potential for a bottom of 52p. So, when it closed at 1122p last December 19th, dividing 1122p by 20 gives a closing price of a real 56.1p, giving us loads of comfort the share price had found a bottom above our ultimate bottom at 52p.

This gift provided a warm fuzzy feeling which lasted almost a month, when everything for the company which describes itself as “producing, transporting, and marketing primarily Natural Gas and Natural Gas liquids from existing assets in the USA.” This, while sounding quite grand, is actually a bit of a problem, due to Natural Gas now trading at its lowest level since the start of 2020. This salient detail is being ignored by energy companies keen to protect the artificially inflated prices currently being charged but we suspect the markets are perfectly aware of the damage being inflicted on the bottom line of producers. Currently at 1592 cents, the price of Natural Gas looks perfectly capable of enjoying eventual reversal to a bottom around 680 cents, a potentially remarkable reversal from the high at 10,000 cents in August 2022, when energy prices provoked a headless chicken dance.

Assuming a correlation exists between the paid being experienced by Diversified Energy’s share price and the collapse in Natural Gas prices, we can now speculate on the potential of weakness below 822p now provoking reversal to an eventual new ultimate bottom of 301p – or 15p for those still smarting from the share price adjustment.

If there are to be any miracles, above 1042p currently calculates with the potential of a lift to 1117p with our longer term secondary, if bettered, at a hopeful future 1615p. However, we are concerned at the direct correlation between the drop potentials for gas pricing, showing with an almost identical reversal ratio to that being shown for Diversified’s share price.




Time Issued Market Price At Issue Short Entry Fast Exit Slow Exit Stop Long Entry Fast Exit Slow Exit Stop Prior
10:42:58PM BRENT 8295
10:46:23PM GOLD 2017.62 2011 2008 2003 2019 2032 2051 2073 2011 ‘cess
10:52:07PM FTSE 7739.2
10:56:01PM STOX50 4761.5
10:58:00PM GERMANY 17079.8
11:00:17PM US500 5009.8 5004 4988 4969 5015 5015 5021 5028 5004
11:03:10PM DOW 38635.5
11:06:59PM NASDAQ 17724.7
11:09:24PM JAPAN 38536


19/02/2024 FTSE Closed at 7728 points. Change of 0.22%. Total value traded through LSE was: £ 3,567,027,566 a change of -46.92%
16/02/2024 FTSE Closed at 7711 points. Change of 1.5%. Total value traded through LSE was: £ 6,719,822,861 a change of 59.53%
15/02/2024 FTSE Closed at 7597 points. Change of 0.38%. Total value traded through LSE was: £ 4,212,176,049 a change of -10.97%
14/02/2024 FTSE Closed at 7568 points. Change of 0.75%. Total value traded through LSE was: £ 4,731,346,457 a change of -6.79%
13/02/2024 FTSE Closed at 7512 points. Change of -0.81%. Total value traded through LSE was: £ 5,075,825,719 a change of 6.46%
12/02/2024 FTSE Closed at 7573 points. Change of 0.01%. Total value traded through LSE was: £ 4,767,866,668 a change of -14.99%
9/02/2024 FTSE Closed at 7572 points. Change of -0.3%. Total value traded through LSE was: £ 5,608,670,910 a change of 3.17%

SUCCESS above means both FAST & SLOW targets were met. ‘CESS means just the FAST target met and probably the next time it is exceeded, movement to the SLOW target shall commence.

Our commentary is in two sections. Immediately below are today’s updated comments. If our commentary remains valid, the share can be found in the bottom section which has a RED heading. Hopefully, this will mean you no longer need to flip back through previous reports. HYPERLINKS DISABLED IN THIS VERSION

Please remember, all prices are mid-price (halfway between the Buy and Sell). When we refer to a price CLOSING above a specific level, we are viewing the point where we can regard a trend as changing. Otherwise, we are simply speculating on near term trading targets. Our website is www.trendsandtargets.com.

UPDATE. We often give an initial and a secondary price. If the initial is exceeded, we still expect it to fall back but the next time the initial is bettered, the price should continue to the secondary. The converse it true with price drops.

We can be contacted at info@trendsandtargets.com. Spam filters set to maximum so only legit emails get through…

Section One – Outlook Updated Today. Click here for Section Two – Outlook Remains Valid shares

Click Epic to jump to share: LSE:AML Aston Martin** **LSE:AVCT Avacta** **LSE:CNA Centrica** **LSE:GRG Greggs** **LSE:IHG Intercontinental Hotels Group** **LSE:RR. Rolls Royce** **LSE:ZOO Zoo Digital** **


Updated charts published on : Aston Martin, Avacta, Centrica, Greggs, Intercontinental Hotels Group, Rolls Royce, Zoo Digital,

LSE:AML Aston Martin Close Mid-Price: 165.7 Percentage Change: -2.30% Day High: 168.5 Day Low: 163.3

Target met. Continued weakness against AML taking the price below 163.3 c ……..

Subscribe for more


View Previous Aston Martin & Big Picture ***

LSE:AVCT Avacta Close Mid-Price: 93.5 Percentage Change: -0.53% Day High: 95 Day Low: 89.5

Target met. If Avacta experiences continued weakness below 89p, it will i ……..

Subscribe for more


View Previous Avacta & Big Picture ***

LSE:CNA Centrica Close Mid-Price: 130.8 Percentage Change: -5.97% Day High: 138.85 Day Low: 130.5

Continued weakness against CNA taking the price below 130.5 calculates as ……..

Subscribe for more


View Previous Centrica & Big Picture ***

LSE:GRG Greggs. Close Mid-Price: 2800 Percentage Change: + 0.29% Day High: 2810 Day Low: 2782

All Greggs needs are mid-price trades ABOVE 2810 to improve acceleration ……..

Subscribe for more


View Previous Greggs & Big Picture ***

LSE:IHG Intercontinental Hotels Group. Close Mid-Price: 7910 Percentage Change: + 1.93% Day High: 7934 Day Low: 7728

Target met. In the event of Intercontinental Hotels Group enjoying furthe ……..

Subscribe for more


View Previous Intercontinental Hotels Group & Big Picture ***

LSE:RR. Rolls Royce. Close Mid-Price: 334.2 Percentage Change: + 3.37% Day High: 334.1 Day Low: 322

Target met. All Rolls Royce needs are mid-price trades ABOVE 334.1 to imp ……..

Subscribe for more


View Previous Rolls Royce & Big Picture ***

LSE:ZOO Zoo Digital Close Mid-Price: 27.7 Percentage Change: -3.65% Day High: 29 Day Low: 27.75

Continued weakness against ZOO taking the price below 27.75 calculates as ……..

Subscribe for more


View Previous Zoo Digital & Big Picture ***

*** End of “Updated Today” comments on shares

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.