You Ask, We Analyze: Why Camber Energy Looks Headed For A Bullish Reversal

On Sunday evening, Benzinga asked its followers on Twitter what stock they’re buying at the open on Monday? From the replies, Benzinga selected one ticker for technical analysis.

@tford3487, @TopherDouglas, @RayRehman96, @apmvpsportsline and @dcooper1269 are buying Camber Energy, Inc CEI.

On Monday, Camber Energy announced it had received an extension to file its outstanding financial reports. The oil and natural gas producer now has until Dec. 17 to file the reports in order to bring itself into compliance with the NYSE American’s listing standards.

The delinquency, paired with a short report issued by Kerrisdale Capital that was based on Camber Energy failing to file its financial reports, hasn’t deterred some retail investors from continuing to accumulate a position in the stock. The retail investors likely believe Camber Energy remains a good candidate for another short squeeze due to its underlying statistics:

• Camer Energy has a relatively small float of 249.6 million shares with 32.57 million shares, meaning 13.05% held short. The number has increased substantially from 26.02 million shares held short in September.
• See Also: 20 Stocks Moving in Monday’s Pre-Market Session

The Camber Energy Chart: Camber Energy entered into a downtrend on Oct. 20, making a consistent series of lower highs and lower lows until Nov. 15 when the stock hit a bottom at the $1.02 mark. On Nov. 16, Camber Energy tested the level as support and bounced, which created a bullish double bottom pattern on the daily chart.

On Nov. 17, Camber Energy gapped up 20% higher and ran another 7.46% higher intraday on higher-than-average volume. The stock has since retraced about 70%, which has allowed Camber Energy to fill the lower gap and may give bulls more confidence going forward.

When Camber Energy gapped up and reached the Nov. 17 high of $1.51 it also bucked the downtrend by making a higher high above the Nov. 5 high of $1.38. Bulls will want to watch to see whether the stock now prints a lower high above the $1.02 level to confirm an uptrend may be in the cards.

Camber Energy is trading in line with the eight-day exponential moving average (EMA and below the 21-day EMA, with the eight-day EMA trending below the 21-day, which leans bearish. The stock is also trading below the 50-day simple moving average, which indicates longer-term sentiment is bearish.

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• Bulls want to see Camber Energy print a reversal candle to indicate the high-low is in and then for big bullish volume to push the stock up over $1.51. The stock has resistance above at $1.36 and $1.84.
• Bears want to see big bearish volume come in and drop Camber Energy down below the $1.02 level to negate the possible trend reversal. The stock has support below at 86 cents and the 48-cent level.