REX cheong today to 9.9 cents Why? Anyone venture an opinion. REX no doubt is in the E part of the E& P business of oil. It gets its $ if it strikes oil and unlike some other E players, REX doesn't get affected when CAPEX is cut by other E players. What bothers REX would be the price of oil which is the asset it is trying to dig for and then to sell later on as reserves .....
Oil is holding near $45 while the bad news keeps coming. For investor Jim Rogers, that’s usually a sign a rebound is near.
“When there’s bad news and something doesn’t decline, it usually means it’s at a bottom and will be turning,” Rogers, who correctly predicted a commodities rally in 1999, said in an interview in Singapore on Thursday.
“Whether we’re at a turning point or not, I don’t know yet and I’m watching this very closely.”
REX and other oil stocks down a bit this morning ....as crude oil prices take a breather after a recent mini rally . Jeez, things are volatile and will continue to be so.
Thing to note is that the market sentiment can improve significantly in a moment, and lift all boats. Not forgetting that there are shortists out there who have to scramble to cover their positions .....
Rex is a stock that is sensitive to the movement of oil price, and the expected direction of oil price. Rex should do very well on signs that oil price has bottomed and has an upward trajectory. This appears to be the case now. Rex +0.4 cents currently --> 10.9 cents.
In a statement, Energy Minister Mohammed bin Saleh al-Sada - who is also acting president of OPEC, the Organisation of the Petroleum Exporting Countries - said the oil price has "bottomed out" and he sees signs of recovery next year.
Broker says ---- In the past 3.5 months, REX volume of shares is nearly 400 million units, nearly = free float of REX. Share price traded 8-14 cents, with volume weighted average price of 10.04 cents. .
Interpretation = lots of people's holding price is 10-c level, so there is going to be first resistance at around 12 cts.
Broke thru several layers of resistance, this is a very bullish sign on a TA basis. Fundamentally, looks good, especially with expectations of falling rig counts in US and possible drop in oil production leading to a stronger crude oil price in 2016. REX now 16.4 cents.