Camber Energy, Inc (NYSE: CEI) was halted on the downside on Tuesday after Kerrisdale Capital released a brief report on the company.
The stock is trending on various social media platforms, led by @MrZackMorris which has over 552,000 Twitter followers and a newly created subreddit, r / ZackStreetBets, with over 32,000 members.
Kerrisdale Capital went straight to the Camber Energy cops in its report: “Camber Pumpers took up the notion that the company is now a game of carbon capture and clean energy, citing a recent licensing agreement by Viking. But the ESG Clean Energy technology license is a joke. “
“Finally, we’d like to thank Zack for giving us the most fun short since $ GSAT in 2014,” Kerrisdale Capital wrote on Twitter.
@MrZackMorris responded with a message to his followers: “Sorry guys, it looks like they are coordinating attacks on us. Manage your positions, ”he wrote.
The camber energy diagram: In the afternoon, Camber Energy had temporarily slumped by over 65%. As the stock fell, it marked the 200-day simple moving average (SMA) and then rebounded towards support and resistance at the $ 1.36 level.
Camber Energy declined due to large volume declines, showing that there are far more stocks up for sale than there are buyers. The short report likely sparked a great deal of fear among retailers scrambling to get out of their positions en masse.
For technical traders, Camber Energy’s stock was likely down regardless of the report, as the relative strength index (RSI) hit an unhealthy 90% on September 30th. When a stock’s RSI approaches or exceeds 70%, it becomes overbought, which is a sell-signal.
The bearish price action caused Camber Energy to lose support from the 8- and 21-day exponential moving averages, which is bearish. While the eight-day EMA is still above the 21-day trend, it is likely that the eight-day day will fall below the 21-day price if the stock is unable to reach the levels of 2.80 USD to be reached again quickly.
- Bulls are looking for sideways consolidation on small volumes, which would suggest selling fears have subsided. If Camber Energy can close the trading day above the $ 1.36 level, the next resistance level will be at the $ 1.84 level.
- Bears want to see Camber Energy fall back below $ 1.36 on sustained strong bearish volume, which could eventually cause the stock to lose support on the 200-day SMA. Below that level there is support at 78 cents.