Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Texas Panhandle Oil Stock at 'Great Entry Point'
Contributed Opinion

Share on Stocktwits


With the price of oil continuing to rise, technical analyst Clive Maund charts a company that he believes is in position to benefit.

Molori Energy Inc. (MOL:TSX.V; MOLOF:OTCQB) retreated a little further than we expected when we bought it back early in March at C$0.28, as it dropped back to a low at C$0.25, but, as they say, nothing is broken, and now, with it at the same price we bought it at then, it continues to be rated a strong buy here, and it looks even more attractive as oil is continuing to advance, which is believed to be due to the increasing shortfall resulting from Venezuela becoming defunct.

On the 3-year chart is continues to look like a large Cup & Handle base is completing in Molori, with the further dip of recent weeks making the lower boundary of the Handle of the pattern more horizontal. As we can see there is strong support down to about C$0.23, and a number of factors make it highly unlikely that this support will fail—on the contrary it should turn up and advance from here.

On the 6-month chart we can see the various reasons why Molori should advance from here. The first reason (not on this chart) is sector strength—the XOI oil index made new highs last week. The second is that it is oversold relative to its moving averages. The third is that its momentum trend (MACD) has turned higher, but by far the biggest reason is the bullish volume pattern that has driven the Accumulation line to new highs despite the price dropping so far this year. This is an indication that most of the volume by far is to the upside, which is bullish.

It is worth referring back to the March article to view the 12-year chart and see the very bullish looking Cup & Handle base forming at a low level in the context of prior price action, which saw it trading at much higher levels.

Molori Energy website.

Molori Energy Inc MOL.V, MOLOF on OTC, closed at C$0.28, $0.22 on 20th April 2018.

Clive Maund has been president of, a successful resource sector website, since its inception in 2003. He has 30 years' experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.

Want to read more Energy Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Molori Energy. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Molori Energy.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Molori Energy, a company mentioned in this article.

Charts provided by the author. Disclosure:
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.

Want to read more about Oil & Gas - Exploration & Production investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe