I saw what I was waiting for, Nice BreakoutHope to see some more 5 to 5m volume days.
Nice breakout on Thursday. Volume from 3 to 5m is always good and would like to see Anonymous as the top buyer. Yesterday Anonymous, Morgan and CIBC were the top buyers with a volume 3.6m. Initially National blocked the stock at $9.33 but the institution took out Over 700k shares pretty fast.
Oil prices are the key to price movements. Hope to see some more mega volume days, that is when large sellers and traders are taken out and stock still keeps its gains. HFT may go short intraday but when you have a mega volume with a big spike in the price of around 10% then intraday short sellers cannot force the price down to cover and break even. Ranger traders would also be taken out of their shares. Some would chase the stock. These kinds of moves are very good for the share price because it will loosen up the stock and allow it to easily hit new highs.
Some institutional investor has been on the sideline for different reasons. Now they don’t have a choice because the Oil sector is one of the best performing sectors and as the sector is becoming a bigger size of the Tsx index the institutions are being forced to move into the oil sector.
With interest rates raising anything with high multiples, especially the tech sector sees an outflow of funds. The oil sector at current prices is generating huge FCF. There is still value in the sector based on the FCF at current prices.
All oil stock share price targets were projected at older very low strip prices. The average oil price for the quarter from Jan to March is much higher and all analysts have started using more current oil prices which paints the real picture. That makes a huge difference in the project share price targets. Now, most of the poor hedges have expired or have become smaller or will expire soon in this quarter. So all oil companies are minting cash and shares will eventually catch up.
Yesterday there was a lot of money moving into oil stock there were 86 highs and 186 new lows. US indices were down. There was a rotation of sectors taking place. SGY with a volume of 3.6m was only 26th in volume on the exchange. There were 25 other stocks that had bigger volumes.
While most oil stock has nice moves but only a few made to 52 weeks highs. After the Russian war and oil run to about $130, the oil prices and stocks had pulled back really hard. Yesterday some oil stocks created new highs and others are getting close to 52-week highs.
It was nice to finally see SGY with a decent day and the price closed above $10.00 RSI is 68.50. From 70 it entries overbought area. Last time it ran up to 88.3 which means if the oil and oil stock move higher there is still room and strength in the stock to run. When there is institutional buying in a sector then RSI can remain overbought for a very long time. You have so the strength in the sector and momentum.
An important thing to watch is the oil price and flow of intuitional money.