{"id":117817,"date":"2017-12-10T23:52:47","date_gmt":"2017-12-11T04:52:47","guid":{"rendered":"http:\/\/countingpips.com\/?p=117817"},"modified":"2018-06-01T15:48:25","modified_gmt":"2018-06-01T15:48:25","slug":"shining-a-light-on-an-out-of-favor-oil-stock","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/12\/shining-a-light-on-an-out-of-favor-oil-stock\/","title":{"rendered":"Shining a Light on an Out-of-Favor Oil Stock"},"content":{"rendered":"
December 10, 2017<\/div>
\r\n<\/div><\/div>

The Energy Report<\/b><\/p>\n

Source: Clive Maund for Streetwise Reports<\/em> \u00a0\u00a012\/07\/2017<\/a><\/b><\/p>\n

Technical analyst Clive Maund charts an oil and gas explorer that he believes is under the radar of most investors.<\/p>\n

Torchlight Energy Resources Inc. (TRCH:NASDAQ)<\/a> has fallen out of favor with investors and is largely off
\nthe radar, which is understandable considering that it has done nothing
\nfor its investors for two years. However, the company still has potential
\nand it is thought that there is an increasing chance that there will be
\nsome positive news soon, with the current lack of interest increasing
\nupside potential.<\/p>\n

Its 8-year chart looks much the same as when we last looked at it back
\nin June, so the preparation of this chart was largely a copy and paste
\njob. There is one very noteworthy difference, however, which is that the
\nstock is considerably cheaper. When we looked at it back in the summer
\nit was priced at $1.66, and at that time it was written that it was
\nworth accumulating on any near-term weakness, and that we have certainly
\nseen as it is now priced at $1.12. Observe on the chart how it
\ncontinues to look like it is basing, within a large bucket like pattern,
\nand the positive volume pattern and volume indicators bode well for an
\neventual breakout from this pattern, which after all this time could now
\nbe drawing closer.<\/p>\n

<\/center>Turning now to the 6-month chart we see that the intermediate downtrend
\nfrom early November has brought it down to an attractive price,
\nespecially as it has arrived back at a support level. While there is
\nsome chance that it could drop back further to the C0.95 area, which is
\nanother support level, that is made less likely by the quite high volume
\non the “inverted hammer” candlestick a few days back.<\/p>\n

<\/center>Our last 3-month chart is a relative chart that shows how Torchlight has
\nbeen underperforming oil since late October, and thus looks due for a
\ncyclical change of fortune, which may have started in recent days\u0097
\nperhaps management realize that now would be a good time to “throw
\ninvestors a bone.”<\/p>\n

<\/center>Conclusion: Torchlight looks out of favor here and it is
\nsuspected to be at a cyclical low. Therefore rated a buy as any news out
\ncould drive it sharply higher\u0097even if it doesn’t break out of its
\nlarge base pattern and only makes it back up to its highs earlier this
\nyear, it would result in good percentage gains from the current low
\nprice. Point for a stop is $1.04.<\/p>\n

Torchlight Energy website<\/a><\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

\r\n
\r\n
\r\n

<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

\r\n<\/div>\r\n

\r\n
<\/div>\n

Torchlight Energy Resources, TRCH on NASDAQ CM, closed at $1.12 on 6th December 2017.<\/p>\n

Clive Maund<\/i><\/a> has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.<\/p>\n

\n

Read what other experts are saying about:<\/p>\n