Technical analyst Clive Maund discusses a company
that he believes will break higher regardless of what oil does.
Blackbird
Energy Inc. (BBI:TSX.V) is still on for an upside breakout from its bull
Flag, and the picture looks more potent than when we
bought it back on the 6th, because, as we can see on its latest 6-month
chart, the additional time that it has remained within this tight Flag
pattern has allowed the overbought condition that arose as a result of the
last upleg to continue to unwind and the moving averages to swing into more
bullish alignment, with the 50-day catching up with the price the better to
force a breakout. Furthermore buyers have been raising their bids in recent
days on increasing upside volume, another sign that it is ready to break out.
How far will the next upleg get? – it should rally to resistance in the
C$0.50–C$0.52 area where we will consider taking profits, with some chance
that it could storm through this resistance. This is an oil stock that looks
set to break higher regardless of what oil does.
Holders should therefore stay long, and new purchases are in order, up to
C$0.415. Although the number of shares in issue in Blackbird is high at 749
million, it is understood that many are tightly held by insiders.
Blackbird Energy website.
Blackbird Energy Inc, BBI.V, BKBEF on OTC, closed at C$0.38. $0.307 on
16th March 2018.
