On Thursday evening, Benzinga asked its followers on Twitter (NYSE:TWTR) what stock they’re most focused on to end the week. From the replies, Benzinga selected one ticker for technical analysis.
Twitter follower @gamma8Flip responded with Camber Energy Inc. (ARCA: CEI), which increased 15% on Thursday and was “starting to pick up some buzz on the chat forums.”
Indeed, the energy sector had a bullish day on Thursday, with Exxon Mobil Corp. (NYSE: NYSE:XOM) rallying 2.3% to close the session at 94.38. Light Crude Oil Futures (NYMEX: CL1) closed yesterday's session up 3.67%.
On Friday, CL1 was consolidating lower, printing an inside bar pattern on the daily chart, which may indicate a consolidation day is in store for many stocks in the energy sector.
Camber Energy could also be gaining steam due to its psychological relationship to a number of meme stocks, which have been surging lately. The Houston-based company has undergone a number of short-squeezes since January 2021, with one 86% 1-day squeeze taking place on Jan. 28 — the same day GameStop Corp . (NYSE: NYSE:GME) topped out at $120.75.
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The Camber Energy Chart: Camber Energy’s massive rally on Thursday helped the stock to confirm a new uptrend:
- The higher low in the uptrend was printed on Aug. 16 at 35 cents
- The most recent high was formed at the $0.369 mark on Aug. 12.
- On Thursday, Camber Energy soared up above the former higher high, negating the downtrend
- That same day, Camber Energy found resistance at the 50-day simple moving average (SMA)
- It closed the trading session on the level. Bullish traders want to see the stock regain that area as support, to indicate longer-term sentiment has turned bullish.
Eventually, Camber Energy will need to retrace to the downside to print a higher low. Traders not looking for a short-squeeze would prefer for the stock to move upwards at a slower pace to avoid a volume climax and blow-off-top taking place.
Camber Energy has resistance above at 45 cents and the 58-cent level and support below at 34 cents and the 30-cent mark.
See Also: CNBC's Final Trades: 4 Energy Plays With The Biggest Upside
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