(CEI) – You ask, we analyze: Why Camber Energy is heading for a bullish trend reversal

On Sunday evening, Benzinga asked his followers on Twitter which stocks they would buy at the Open on Monday? Benzinga selected a ticker for technical analysis from the responses.

@ tford3487, @TopherDouglas, @ RayRehman96, @apmvpsportsline and @ dcooper1269 just buy Camber Energy, Inc (NYSE: CEI).

On Monday, Camber Energy announced that it had received an extension to filing its pending financial reports. The oil and natural gas producer now has until December 17th to file reports to comply with NYSE American listing standards.

The delinquency, coupled with a brief report from Kerrisdale Capital based on Camber Energy failing to file its financial reports, hasn’t stopped some retail investors from continuing to build a position in the stock. Retail investors likely believe that Camber Energy remains a good candidate for another short squeeze based on the underlying statistics:

  • Camer Energy has a relatively small free float of 249.6 million shares with 32.57 million shares, which means that it is holding 13.05% empty. The number has increased significantly from 26.02 million shares held empty in September.
  • See also: 20 stocks move in Monday’s pre-market session

The camber energy diagram: Camber Energy entered a downtrend on October 20 and formed a constant series of lower highs and lower lows through November 15, when the stock bottomed at $ 1.02. On November 16, Camber Energy tested the level for support and rebounded creating a bullish double bottom pattern on the daily chart.

On November 17th, Camber Energy climbed 20% higher, posting an additional 7.46% more intraday on above average volume. The stock has retreated roughly 70% since then, which has allowed Camber Energy to fill the smaller gap and give the bulls more confidence about the future.

As Camber Energy climbed to the top to hit the November 17th high of $ 1.51, it also bucked the downtrend by hitting a higher high above the November 5th high of $ 1.38. Bulls will want to watch if the stock is now printing a lower high above the $ 1.02 level to confirm that an uptrend is in sight.

Camber Energy trades in line with the eight-day exponential moving average (EMA and below the 21-day EMA, with the eight-day EMA trending below the 21-day trend, which is bearish trending. The stock is also getting below) the 50- day simple moving average which suggests the longer term sentiment is bearish.

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  • Bulls want Camber Energy to print a reversal candle to indicate the high-low has been reached and then for large bullish volume to propel the stock above $ 1.51. The stock has resistance at $ 1.36 and $ 1.84.
  • Bears want to see big bearish volume and pull Camber Energy below the $ 1.02 level to negate the possible trend reversal. The stock is supported below at 86 cents and the 48 cents level.

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