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SORRY you done it
In recent days, we have seen hard knocks on EnQuest's share price. It is a completely natural process in a rapidly rising trend. Enquest is still a stock that has a lot of technical resistance at different levels, but also very fundamental resistance.
Rapid rises with high RSI
When a share that has been as depressed as EnQuest has been up about 50% in a very short time without the company releasing a positive report or the like, it will be healthy with a break in the upturn. Weak owners as well as people who sit outside without any further knowledge of the case, still see high indebtedness and oil, which becomes negative + negative. We do not think this will change until 1-2 positive reports.
Technical
EnQuest Technical Analysis Graph 1 Ecoptimist
The picture shows the day graph and how Enquest reached an RSI of 0.9. Risk / reward was unsold in the short term and a decline was entirely in line with what one would expect.
EnQuest Technical Chart Ecoptimist
The picture shows the weekly photographer. Here RSI 0.8 shows which is also poor risk / reward in the short term. We also see resistance of SEK 3.93, which is both a benchmark set by an analysis house but also an EMA 200 level on a weekly basis. This level constituted a resistance to a previous rise which the arrow indicates.
Investment time horizon
If you are more short-term in your trading, it is important to monitor the rate in order to scale down your exposure at extreme levels, to later scale in at levels that provide better risk / reward. If one is more long-term, such declines should be considered a healthy part of a longer trend where weak owners are shaken out.
Simmer everything loose
In addition to the fact that Enquest is low-valued, has production growth, lowers its debt and benefits from the new IMO regulation, it is the CEO's insider purchase that creates the greatest security.
On the one hand, it will be difficult to understand why he would buy so aggressively in the near future if he did not believe hard on continued positive fundamental development, but we also believe that such insider purchases also create security for other, larger institutional players, who are less likely to sell.
Exchange rate capital
Ultimately, it is the larger institutions' money that drives price development for such a large company as EnQuest. But in the short term, it is likely to continue to be volatile, and in the future, the course also encounters a number of resistances, both in the form of exposed guidance courses from analysis houses, but also technical levels.
It is therefore important that as an investor / trader you are mentally tuned to a high volatility around significant levels.
Wall of worry
In summary, we can note that every rise in a stock meets a constant “wall of worry”. Only when this wall has disappeared and we can read in magazines and other about how fantastic Enquest is will we start selling off aggressively. But we are probably not th
Investment time horizon
If you are more short-term in your trading, it is important to monitor the rate in order to scale down your exposure at extreme levels, to later scale in at levels that provide better risk / reward. If one is more long-term, such declines should be considered a healthy part of a longer trend where weak owners are shaken out.
Simmer everything loose
In addition to the fact that Enquest is low-valued, has production growth, lowers its debt and benefits from the new IMO regulation, it is the CEO's insider purchase that creates the greatest security.
On the one hand, it will be difficult to understand why he would buy so aggressively in the near future if he did not believe hard on continued positive fundamental development, but we also believe that such insider purchases also create security for other, larger institutional players, who are less likely to sell.
Exchange rate capital
Ultimately, it is the larger institutions' money that drives price development for such a large company as EnQuest. But in the short term, it is likely to continue to be volatile, and in the future, the course also encounters a number of resistances, both in the form of exposed guidance courses from analysis houses, but also technical levels.
It is therefore important that as an investor / trader you are mentally tuned to a high volatility around significant levels.
Wall of worry
In summary, we can note that every rise in a stock meets a constant “wall of worry”. Only when this wall has disappeared and we can read in magazines and other about how fantastic Enquest is will we start selling off aggressively. But we are probably not there for a while. This downturn and recent turbulence, therefore, does not change our long-term view, which looks positively at EnQuest's opportunities to continue up in 2020.
Please read our original analysis on EnQuest where we develop our thoughts on the long-term case for the company. As EnQuest is one of the companies where it currently fluctuates a lot, we also make sure to publish updates after reports.
KO, sitt still in boat and keep your shares:-)
Hi Pelle, Can you translate it for us please