MAHA_A trade ideas
Maha Energy AB - bullish viewOMXSTO:MAHA_A
Maha Energy AB is an undervalued Swedish oil stock with production in Brazil. Extremely good netback in excess of $ 40 per. barrel. The company has suffered from being downgraded in 2019 because a separator gauge for measuring the gas to be assured was incorrect and a new one had to be obtained from abroad and verified by authorities, which caused production to decline at the end of 2019 when they no longer had to flare the gas and handling the gas was not possible due to this gas meter. The company now guides with approx. 100% more oil for 2020 than they ended 2019 with. When the company does this the price should be above ATH.
RSI is in a rising trend and the corresponding price is bottoming. RSI, trend and volume indicate that we will move up to price 23-25 in the coming time and can the company deliver the goods in the form of the guided oil volume we must towards ATH.
Meeting long term resistance line on RSIAs seen on the indicator: "RSI" Maha has a very clear resistance line. As of today, 29/12/2019, I find it fitting for a potential retracement which also is because of the Fibonacci Retracement 0.618 line causing resistance. MAHA is still in a very strong uptrend with a massive primary trend of about 35%. I expect a rather small retracement without selling my position unless I see a closing price under 22.5
