New 'NGO' Bull-Cycle run is underway

4 Jan 2020

Technicals:
Wave II A,B,C correction is completed. Wave III is underway. We have broken resistance 2 weeks ago on monster volume, out of a flat minor a,b,c, advancing into wave 3 of III. Solid support at $1.77.
Near-term resistance (H&S neckline) at around $3.87.


After that, resistance and H&S target both at $8.50 (256.5% profit from $2.31), the 23.6 Fib retracement from the all-time highs (2011 @ $34). Considering the amount of volume recently - this could be an indication of institutional buying - and that we are the in wave III cycle, the stop at $8.50 could be a brief one, before hitting double digits territory.


Target 1 @ 8.50
Target 2 @ $17.30
Target 3 @ $26.95

Macros
With things heating up in the middle East, both WTI and especially NATGAS have a lot of space to run. Both retail and commercial could be adding the oil&gas sector to their radar.
With energy stocks being among the most beat-up sector for 2019, prices are compressed to the down-side.

Micros
New management, new dividend pay-outs (April 2020) and top Oil&Gas sector debt/EBITA ratios, are all potential reasons we have seen a 1,500% increase in volume in just over 2 years.