JERICHO OIL update...

originally published Wednesday, January 06, 2021

All Oil & Gas Stocks

The ideal thing to do as an investor is to turn up after a stock’s price has been slashed by a long downtrend and then completed an important basing pattern, and buy it right before it breaks out. That is precisely what we did with this, and it may have been your buying that caused the breakout.

On the latest 7-month chart for Jericho we can see that our suspicion that a Cup & Handle base was completing has been vindicated, for right after we bought it, it broke out on good volume, and has since zig-zagged around, dropping back to test what is now support at the upper boundary of the base pattern twice. Volume since prior to the breakout has been mostly upside volume that has driven both volume indicators shown strongly higher, which is a clear sign that an important new bullmarket has just started in this stock.

Ideally, we should have jumped at it again when it dropped back to touch the top of the earlier base pattern at the 20 cent level, but it is still at a good price at C$0.23, having bounced off the top of the base several days back.

We therefore stay long and the positive price / volume action following the breakout means that it is in order to add to positions here. Please refer back to the 14th December article on Jericho to see the important and interesting long-term charts. Also worth noting is that price / volume action in the US traded stock since breakout looks very positive.

Jericho Oil website

Jericho Oil Corp. JCO.V. JROOF on OTC, closed at C$0.23, $0.184 on 5th January 21.

Posted at 9.18 am EST on 5th January 21.

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.