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Loyz Energy: Will It Head North Again?
Trend Spotting | 01 October 2013
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By: Robin Han
Articles (102) Profile

Loyz Energy hit a one-year high backed by strong volume recently. Hitting one-year high is a sign of strength, indicating that it is in an uptrend, which may sustain for some time. In the past couple of weeks, Loyz pulled back to consolidate. We can see that the selling volume during the pull back is low and shrinking. After the consolidation, it is likely that the uptrend would resume. One may consider buying on weakness during the pull back and expect the stock to resume trending up thereafter.

From the fundamental perspective, this stock did not turn in good results in 2012. However, according to the recent report released on 28 August 2013, it improved a lot this year and net cash generated from operations in 4Q13 returned to the black with $0.3 million from a negative cash flow of $1.4 million in 4Q12. This is also supportive for its share price. While some may not be very familiar with this stock, the return to cash flow positive can become a reason for the share to go up a lot more.

Investors may not be familiar with growing stocks – they have potential to move higher over the longer term, partly due to the uptrend momentum that attracts more buyers that in turn drives up prices higher and higher. Perhaps this will also play out for Loyz.

Furthermore, the risk for this setup is quite low and it has a good reward potential from the trading perspective.

Daily Chart Of Loyz Energy

Robin Han is a Ph.D in Department of Chemical and Biomolecular Engineering and has got a solid foundation in the financial markets.

Please click here for more information about this author.

CWX Global  0.002 -0.001 -33.33%   
Business: Co is a S'pore grown oil & gas, exploration & production co.

Insight: Aug-18, 4Q18 revenue increased by 16% due to the i... Read More

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