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- 88 Energy is a penny stock with very low volumes and highly slow price movement.
- It saw a high of .84 pennies in March. It has been slumping down since then.
- The stock currently trades at a very strong support of .32 pennies.
88 Energy (ASX:88E) is an exploration company, currently exploring onshore Alaska in a prolific liquids-rich area. It was established in 1996 and is based in Perth, Western Australia. The company keeps raising money at regular intervals and has raised a total of 160 million pounds till now. The stock is a penny one and is highly untradeable due to the company profile.
Technical analysis for the stock
It is clearly evident from the candles that the stock is highly volumeless. Thus, trading or technically analyzing such a stock can be pretty tough. The stock made a high of .85 pennies in March, but it has been slumping down since then. The current trading price is .34 pennies. It is pretty close to the support levels of .32 pennies.
The stock has been highly sideways for 4 months. It is now trapping all the investors, who invested in this share. It is more of a trend-based stock that moves based on news and not on technical factors. There has not been any big news since March. Therefore, the stock has been trading sideways. Predicting future movement for the stock becomes difficult in such a condition.
A one-hour time frame shows indecisive candles due to low volumes. .50 pennies can be a good target if upside movement takes place. However, the stock will remain highly unpredictable.
88 Energy is a very low-priced stock and thus it has really low volumes. Such stocks usually do not attract retail buyers because of the risk and slow movement. Thus, big moves in such kind of stock only happen when it is created by the company itself. Users must try to not get into such penny stocks without a proper research and analysis setup.
Analysts have predicted a high upside for the stock by the year’s end. They have given .89 pennies as the target price, which is almost a 200% upside from the current levels.
Conclusion
Even though analysts have predicted a huge upside for the stock, one should enter at their own risk. Such stocks are highly unpredictable and do not follow any technical factors. From an investment Point of view, one must go through all the fundamentals and the company profiles. Thus, making a well-informed decision will be easier.
Important technical levels
- Major support level: .3 pennies.
- Major resistance level: .5 pennies.
Disclaimer:
The views stated by the author or any person named in this article are purely for educational purposes and do not establish financial or investment advice. Investing or trading in instruments like stocks and crypto involves financial risk and should not be done without doing proper research and analysis.
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