Technical analyst Clive Maund charts an oil
company active in Oklahoma's STACK.
You may recall that we took a nice profit in Jericho
Oil Corp. (JCO:TSX.V; JROOF:OTC) back in January, selling
it right at the top. The company continues to be liked for its intrinsic
strengths, but nevertheless it looked set to react back significantly and it
has.
When we sold it we figured that we may buy it back on such a reaction.
Thus it is interesting to observe that after a further loss a large high volume
bull hammer appeared on the chart on Friday, with its intraday low right at
the support line. This is a sign that it has hit at least a temporary bottom,
and with the larger uptrend still in force as shown by the moving average
alignment, it looks like the time has come to buy it back, especially if it
should dip towards the low of the hammer, and a close stop may be set beneath
Friday's intraday low, just in case it doesn’t hold.
Conclusion: Jericho is rated a buy again here, especially on any dip towards
Friday's intraday low, with a stop just beneath it, say at C$0.685. The
larger outlook for the oil sector remains grim, this is a trading setup
particular to Jericho.
Jericho Oil website
Jericho Oil Corp, JCO.V, JROOF on OTC, closed at C$0.76, $0.586 on 2nd
March 18.
Disclosure:
1) Clive Maund: I, or members of my immediate household or family, own shares
of the following companies mentioned in this article: None. I personally am,
or members of my immediate household or family are, paid by the following
companies mentioned in this article: None. My company has a financial relationship
with the following companies mentioned in this article: None. CliveMaund.com
disclosures below. I determined which companies would be included in this
article based on my research and understanding of the sector.
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an affiliate of Streetwise Reports has a consulting relationship with Jericho
Oil.
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Chart provided by the author.
CliveMaund.com Disclosure:
The above represents the opinion and analysis of Mr Maund, based on data
available to him, at the time of writing. Mr. Maund's opinions are his own,
and are not a recommendation or an offer to buy or sell securities. Mr. Maund
is an independent analyst who receives no compensation of any kind from any
groups, individuals or corporations mentioned in his reports. As trading and
investing in any financial markets may involve serious risk of loss, Mr.
Maund recommends that you consult with a qualified investment advisor, one
licensed by appropriate regulatory agencies in your legal jurisdiction and do
your own due diligence and research when making any kind of a transaction
with financial ramifications. Although a qualified and experienced stock
market analyst, Clive Maund is not a Registered Securities Advisor. Therefore
Mr. Maund's opinions on the market and stocks can only be construed as a
solicitation to buy and sell securities when they are subject to the prior
approval and endorsement of a Registered Securities Advisor operating in
accordance with the appropriate regulations in your area of jurisdiction.