Western Energy Services Corp. trading in a range

Nov 16th, 2011 – Comment

Hi Lou, I recently purchased Western Energy…..WRG after hearing good things about the stock on television.  I understand that the people behind the stock were with Precision Drilling, they have top notch drilling equipment and labour and are operating close to capacity.  It all sounded so good and the recent earnings are healthy. The stock is falling […]


About the Author

Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality – and a true believer in the happiness-inspiring powers of capitalism.


Read the author's full profile.


Further Research

Read more about Energy.


Hi Lou,
I recently purchased Western Energy…..WRG after hearing good things about the stock on television.

 I understand that the people behind the stock were with Precision Drilling, they have top notch drilling equipment and labour and are operating close to capacity.

 It all sounded so good and the recent earnings are healthy. The stock is falling and trades very little volume. Are you familiar with this stock?

Thanks,

 Judi

 

Hi Judi,

The most frequently asked question iI field is if I have ever heard of a company and I must honestly say in most cases the answer is no. But that’s a good thing in that I get to open the gift wrapped present you have brought and then I get to spend some time looking at all the moving parts to see if it is a buy, a sell, or a hold. 

Members of  the management team at Western Energy Services Corp. (WRG TSX) do have Precision Drilling on their resumes which confirms that they have worked with one of the biggest energy service companies in the world. That’s never a bad thing. Since the 2009 reorganization the company has been raising money and using it to aquire the assets management requires.

A review of the charts will provide a fresh look at your investment.

 

 

 

 

The three year chart indicates that the shares of WRG have been trading in a range for most of 2011. There is support at $7.00 and resistance at $9.00. I am not sure where you bought your stock but if it was this year you are not in bad shape depending on your investment horizon and expectations.

 

 

 

 

 

 

The six month chart illustrates the signals generated by the MACD. In August the MACD indicated that momentum was shifting to the sell side. In addition the RSI was also moving out of overbought territory again suggesting that the advance had come to an end.

In October at the lows of $6.00 the MACD and RSI signaled a new advance was forming which took the shares  to $8.50 before it ran out of steam.

Best advice I have  in this case is to trade WRG  in the range. The momentum indicators have been generating good entry and exit points to help in your decision making.

 

Make it a profitable day and happy capitalism!

Categories: Energy
Content © Relentless Economics - Charts courtesy Stockcharts.com - Employees Entrance - Optimization Media