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TICKERS: POE

Energy Stock Is 'Looking to Break Out of Large Base'
Contributed Opinion

Source:

Technical analyst Clive Maund explains why he believes this company with projects in Thailand and Indonesia is about ready to start another upleg.

Pan Orient Energy Corp. (POE:TSX.V) presents an overall positive picture of a stock that is probably on the verge of breaking out of a large base pattern. On its 6-month chart we can see that it is definitely in an uptrend, within which it has been consolidating for about 10 weeks now. The sharp intraday drop about a week ago, which left behind a bullish "dragonfly doji" on the chart, marks the likely end of the correction / consolidation phase, and with the 200-day moving average pulling up beneath the price, it looks about ready to start another upleg. The recent volume pattern is favorable, with good upside volume that drove the accumulation line to new highs, a positive sign.


The 10-year chart reveals that a large Double Bottom formed in Pan Orient from early 2016 through late 2018, and the price now appears to be consolidating ahead of an attempt to break out of the entire base pattern which will be signified by a breakout above the resistance level shown which extends up to a little above C$2.50.


It is regarded as a good sign that Pan Orient has only reacted back modestly as the price of oil has reacted back quite sharply to an important support level shown on the 6-month chart for Light Crude below that has a good chance of generating at least a temporary reversal in the oil price, which will of course, should it happen, have a beneficial effect on the price of many oil stocks.


Pan Orient is therefore viewed as being at a favorable entry point here, and a stop may be placed just below the intraday low of the dragonfly candle at, say, $2.08.

Pan Orient Energy website.

Pan Orient Energy Corp. POE.V, POEFF on OTC, closed at C$2.26, $1.73 on 4th October 2019.

Originally posted on CliveMaund.com at 1.25 pm EDT on 6th October 2019.

Clive Maund has been president of www.clivemaund.com, 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.

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Disclosure:
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. CliveMaund.com 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: Pan Orient Energy. Click here for important disclosures about sponsor fees.
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 three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports (including members of their household) own securities of Pan Orient Energy, a company mentioned in this article.

Charts provided by the author.

CliveMaund.com 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.




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