The 12 month daily candlestick chart of Energy stock Origin Energy, courtesy of Metastock, has given a bullish alert in the nature of a bullish engulfing pattern at the end of a decline in the share-price. This has been followed up with a gap higher yesterday, and an up day again today.
Whilst this appearance is a harbinger of further rises, it can’t foretell how long this impulsive move will last.
For context, Origin Energy has been a victim of the global collapse in the prices of Oil and Gas. A “Double Bottom” pattern at $3.50 during January and February this year appears to have heralded a major trend change, corresponding to an easing in concerns as to its future viability. Buyers started returning to the stock, but the uptrend stalled at $6 to enter what now appears to be a trading range.
Origin appears to be set to break above the previous high of $5.40 before again testing the $6 resistance level.
Acknowledgement and Disclaimer
I am a holder of a small parcel of shares in Origin Energy, re-entering today on the basis of the chart features noted above. I am not a qualified investment advisor, and therefore urge readers to consult with someone who is, before investing themselves.