MACD Signals Storm Brewing for Exploreco

Sep 15th, 2008 – Comment

Hello Lou, I hear that Storm Exploration (SEO-T) is an excellent buy, but I won’t make a move on the stock without getting your humble opinion. Please let me know what you think of it. Thanks, Debbie Hi Debbie, Thanks for your confidence in my abilities but the great objective of this site is to […]


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Moved aggressively without support

Moved aggressively without support

Hello Lou,

I hear that Storm Exploration (SEO-T) is an excellent buy, but I won’t make a move on the stock without getting your humble opinion. Please let me know what you think of it.

Thanks,
Debbie

Hi Debbie,

Thanks for your confidence in my abilities but the great objective of this site is to help investors develop their skills so that heavens forbid I get hit by a bus or better yet pack it all in and head to a well deserved retirement, you will be prepared to carry on the fight without me.

Storm Exploration Inc., SEO TSX, has been in a sell off like most of the energy sector as the price of oil and natural gas retreated from the July 2008 highs.

You can see that the MACD signaled a sell off in late June and the RSI moved out of an overbought situation that had existed since January. The last candlestick on the chart is a doji which tells us that there is indecision amongst the bulls and bears.

The 2008 run up is another example of a stock moving aggressively without building much support. At this point the next level of support comes in at $12 which is also on the moving average.

The stock is in a down channel so it has to break above the upper resistance channel to confirm that we are reversing the trend.

On a fundamental basis SOE management has done a great job expanding its production which is 85% natural gas since it was formed in 2004. But that in and of itself won’t make the stock run higher in the face of retreating commodity prices.

Happy Capitalism!

Categories: Energy
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