Stock over 200 sma after a very long timeATH has been a declining trend stock. Since August 2015 it became a range bound stock. For over a year the stock did not traded over 200 sma once . Today finally after a very long time it has crossed the 200 sma .
Now this stock has to stay above & close above 200 sma so that the stock can confirm the possible reversal process. 20 sma has crossed over 50 sma but it is still well below the 200 sma. Frist 20 sma will cross over 200 sma & then 50 sma will cross over 200 sma which will confirm the reversal for the stock by creating a golden cross. This stock still needs some time to do that. PGF created a golden cross last month & has taken off. PGF reversal is confirmed & in tack.
Still ATH can run up because the noose around ATH neck was Hangingstone production that was bleeding lot of cash. This production has a breakeven around US WTI $ 40- 45. Today WTI is trading at $48.23 & the future months are over US $50.
Then you have a massive short position for the stock. With Murphy deal & massive cash position the company has this company has no liquidity problems. The huge short position at these low prices is bound to be covered.
Once upon a time this use to be a $18 stock. Was way over priced. But the stock at the present price is going to be a multi bagger. It stock was incorrectly misprices as it was shorted big time. These short sellers will now help in undoing the damage to the stock.