janfoux

Oil comes back in business

Long
NASDAQ:CDEV   None
I think oil is not healthy and not environment friendly either, but still can be a good investment, at least during these times after a collapse that we experienced because of the lock downs. So, we can ride the recovery. The outlook here is not only the "fill gap". Reaching $1.49 is not the end of the story. More likely an ABC correction could follow after completion of the 5th wave (maybe some profit taking there) and/or it will continue to recover back to some reasonably higher level, even if not to the original price where it was before -last year was in the moon compared to now- but to a much higher area where it is now, that is quite sure. No more risk of going bankrupt for Centennial, nor will it collapse much in a likely case of a market fall or correction during the following months, as this stocks price is already very low and oversold in general (in my opinion) not talking about the technicals in this particular case but in general. So I am long on CDEV, not a day-trade, nor a swing trade, but hold it until November at least, preferably longer. This is a great company, they manage expenses smart, the rigs are in the best location nationwide and they are a confident, experienced team. Can not say anything bad or high risk about them any more, this is why I made the analysis.

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