TORCHLIGHT ENERGY RESOURCES...

originally published Monday, November 14, 2016

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Mid and Small Cap / Drillers Oil and Gas Stocks

We got stopped out of Torchlight about even at $1.05 at the end of September before it broke down from a Head-and-Shoulders top and dropped hard. Then we missed the chance to pick it up at a very good price near recent lows. The story with this company is not that it has failed to deliver, but rather delay, which has resulted in some investors getting bored and frustrated and jumping ship, but now this looks like it is about to be remedied.


On the latest 6-month chart for Torchlight, it initially looks like it is rolling over beneath resistance at the underside of the Head-and-Shoulders top and is going to head south again, but on closer inspection we can see that a small Cup and Handle base may be completing, an interpretation that is given a lot more weight by the Accum-Distrib line, which is strong, being as it is close to new highs. So it looks like Torchlight is suddenly going to break above this resistance, which will be a very bullish development, and moving average alignment alignment certainly supports such a move, as price and moving averages are tightly bunched and the latter could quickly swing higher into bullish alignment.

Conclusion: Torchlight is a buy again here, and should you wish to employ at stop the suggested position is (closing) $0.84.

Torchlight Energy website

Torchlight Energy Resources, TRCH on NASDAQ CM, closed at $0.95 on 11th November 16.


Posted at 5.00 am EST on 14th November 16.

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 stockmarket 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.