Bullish here on BTE. Love the Oil and Gas sector right now and have for a while. Broken several market structure resistance and forming bullish pennant with two significant levels of support below and a lot less immediate resistance ahead. Could consolidate here for a while based on the MACD history but looking for a break up out of the pennant!!
See what happens!
The more I am looking at the resource sector and how active it has been lately the more bullish and excited I am for it. Here is a quick observation of BTE
BTE is setting up nicely for a buy off all time lows. From the weekly we've found major support areas between 2.01-2.20 price area. Trading within a descending wedge on the W1/D1. The double top on the D1 formed since Feb 8th has created a bullish cypher pattern and this is the area where we'd expect to buy the D. If you get a continuation this cypher pattern...
RSI of less than 30 on the daily chart shows a strong potential for a rebound from there level which could learn to a full reversal longer term. Today appears to have been the start of it with significant bull volume and a 6% gain. If we gap up on Monday above $3.15, we'll see $3.49 intraday or Tuesday and bullish reversal will be confirmed. Bears are tenacious...
We're hitting long term support levels just under $3. Last of the stop loses were flushed and we can expect an rebound from here. Let's see if the bounce if a reversal or just a bounce.
All the negatives appear to be built in. With 1/3 of the total production price to WTI in USD, BTE at this price has great reward to risk ratios. Too early to call a trend reverslaes but this is how they happen.
TSX:BTE
We can see a support level form on BTE at around $4.22 after the Trent down since May, with the increase in volume on the 10th to the 12th we could see a short sell off then due to anticipation of the earnings report the speculators could buy in to follow a $ stage Elliott wave.
BTE.TO was supposed to outperform as long as the price of oil stays above 66$ since December. As you can see, its up by 89%. The could be a potential gap up and shorting opportunity (intraday). If anyone has any suggestions or corrections. Comments are much appreciated as I am always willing to learn.
Baytex Energy Corp. operates as an oil & gas exploration and production company. It engages in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. The company was founded on June 3, 1993 and is headquartered in Calgary, Canada.
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