BPT approaching an historic resistance zone -$1.70 to $1.80
Beach Energy has found some legs in the last couple of week. I like what I'm seeing. It's coming off a very low base on the weekly stochastics and there's room to build some real long term momentum here.
BPT has an historic respect for the 1.70 to 1.80 zone that's acted as a major support and resistance zone for over a decade. Should BPT manage to trade convincingly above this zone on the next run it would signal a market re-rate for this company; I believe its on the cards with energy credit crunch unfolding and a bouyant oil/gas sector.
BPT has an historic respect for the 1.70 to 1.80 zone that's acted as a major support and resistance zone for over a decade. Should BPT manage to trade convincingly above this zone on the next run it would signal a market re-rate for this company; I believe its on the cards with energy credit crunch unfolding and a bouyant oil/gas sector.
Comment:
Zooming in on the weekly Beach is at a confluence of resistance right now - the apex of two trend lines, but more importantly below dome zones of high price level volumes shaded by the rectangles.
Comment:
It would not surprise me to see a pull back to absorb some supply over the coming weeks before a rally to take out $1.80
Comment:
Beach is now caught in a zone of heavy supply. You can see its being held by an overhead trendline which is really to say, there's significant volumes being traded around the $1.50 mark.
The quick Stochastic (grey) looks like it wants to top out shortly. This isnt to say prices cant increase from here, they can. But the longer term Stochastic is still meandering. ITs a mixed signal though as Twiggs Money Flow is looking bullish and price is holding in this tight trading zone.
I'll take an each way analysis bet here:
1. A weekly close over and above $1.55 would be extremely bullish in the face of the capping/supply happening in this control zone (control price for the period shown is $1.49. It would likely trigger a test to retake the $2.00 level in haste.
2. Weekly close below $1.42 would be a vindication that the short term Stochastics has topped out to early and Beach would need to bide some weeks before its next foray through $1.50.
With energy waking up in a post covid world, my feel is that Beach will spend a fair part of Q4 clawing back some lost momentum
The quick Stochastic (grey) looks like it wants to top out shortly. This isnt to say prices cant increase from here, they can. But the longer term Stochastic is still meandering. ITs a mixed signal though as Twiggs Money Flow is looking bullish and price is holding in this tight trading zone.
I'll take an each way analysis bet here:
1. A weekly close over and above $1.55 would be extremely bullish in the face of the capping/supply happening in this control zone (control price for the period shown is $1.49. It would likely trigger a test to retake the $2.00 level in haste.
2. Weekly close below $1.42 would be a vindication that the short term Stochastics has topped out to early and Beach would need to bide some weeks before its next foray through $1.50.
With energy waking up in a post covid world, my feel is that Beach will spend a fair part of Q4 clawing back some lost momentum
Comment:
It's interesting to overlay a Fib pitchfork on BPT Price action. It works well to capture areas or resistance and the next few weeks may be the start of a sustained run.
What is clear is that the black trend line from the March 2020 low continues to act as an important point of support and resistance having captured some major pivot points since then.
I have labelled a price target of 1.87 as an area free of a confluence of supply/resistance. If we were to push into this area in the next week or two, I'd be looking at the move up from Sept 2021 as impulsive.
The short and long term Stochs are in a nice position - both showing strength. The much longer term Stoch is only now beginning to turn up from its lows and has some room left to top out.
It's interesting to overlay a Fib pitchfork on BPT Price action. It works well to capture areas or resistance and the next few weeks may be the start of a sustained run.
What is clear is that the black trend line from the March 2020 low continues to act as an important point of support and resistance having captured some major pivot points since then.
I have labelled a price target of 1.87 as an area free of a confluence of supply/resistance. If we were to push into this area in the next week or two, I'd be looking at the move up from Sept 2021 as impulsive.
The short and long term Stochs are in a nice position - both showing strength. The much longer term Stoch is only now beginning to turn up from its lows and has some room left to top out.
Comment:
I favour momentum to the upside shortly. Money Flow starting to push higher during a consolidation. Longer term Stoch holding high and waiting for shorter term Stoch to turn up (its quite a bullish posture at present). Pitchfork is showing resistance that needs to be broken. Still looking for $1.86 as a price target above resistance from which a longer term run could form.