Very interesting Bakken play EOX – Emerald Oil is starting to break out of a long base on huge above average volume. The set-up is very bullish as the multi month base is now providing great pattern pressure. Something to keep in mind is the psychologically important 10$ level. Round numbers do act as magnets attracting price. As you can see in the chart I see a run-up towards 10, a consolidation around 10 and ultimately a push towards the 12 – 13 USD price area. Right now energy stocks are a great means for portfolio diversification as they are not extended and just starting an up trend. I have a position.
Click chart to maximize:
Company description from EOX’ website:
Emerald is an independent exploration and production focused on developing oil wells in the Williston Basin of North Dakota and Montana while targeting the Bakken and three forks shale oil formations. Emerald is based in Denver, Colorado. Emerald controls approximately 66,000 net acres in the Williston Basin. The Company currently has two rigs running in McKenzie County, North Dakota. Emerald is actively acquiring more operated leasehold in North Dakota and Montana.
The people who successfully predict extreme events, and are duly garlanded with accolades, big book sales, and lucrative speaking engagements, don’t do so because their judgment is so sharp. They do it because it’s so bad.
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