“We still hold the view that oil prices should continue to strengthen from here due to global supply issues and underinvestment,” Michael said.

“Worley (WOR) is a provider of global engineering, advisory and project management services to the oil, gas, mining, power and infrastructure sectors.

“The business continues to face both revenue and margin headwinds from ongoing project deferrals and competitive pressures.

“However, a rising oil price is likely to see some share price strength in the short term. WOR put in a double bottom at the end of last year (circled).

“Then in the last couple of weeks, it has managed to push through a couple of major resistance lines.

“It now looks as though WOR is going to push higher from here during the next several weeks and attempt to retest the recent peak near $14,” Michael concluded.

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