On Monday, Camber Energy announced it had received an extension to file its outstanding financial reports. The oil and natural gas producer now has until Dec. 17 to file the reports in order to bring itself into compliance with the NYSE American’s listing standards.
The delinquency, paired with a short report issued by Kerrisdale Capital that was based on Camber Energy failing to file its financial reports, hasn’t deterred some retail investors from continuing to accumulate a position in the stock. The retail investors likely believe Camber Energy remains a good candidate for another short squeeze due to its underlying statistics:
Camber Energy Chart
Camber Energy entered into a downtrend on Oct. 20, making a consistent series of lower highs and lower lows until Nov. 15 when the stock hit a bottom at the $1.02 mark. On Nov. 16, Camber Energy tested the level as support and bounced, which created a bullish double bottom pattern on the daily chart.On Nov. 17, Camber Energy gapped up 20 percent higher and ran another 7.46 percent higher intraday on higher-than-average volume. The stock has since retraced about 70 percent, which has allowed Camber Energy to fill the lower gap and may give bulls more confidence going forward.
When Camber Energy gapped up and reached the Nov. 17 high of $1.51 it also bucked the downtrend by making a higher high above the Nov. 5 high of $1.38. Bulls will want to watch to see whether the stock now prints a lower high above the $1.02 level to confirm an uptrend may be in the cards.
- Bulls want to see Camber Energy print a reversal candle to indicate the high-low is in and then for big bullish volume to push the stock up over $1.51. The stock has resistance above at $1.36 and $1.84.
- Bears want to see big bearish volume come in and drop Camber Energy down below the $1.02 level to negate the possible trend reversal. The stock has support below at 86 cents and the 48-cent level.
