- 88E is a penny stock with very less volumes and highly slow price movement.
- It saw a high of .84 pounds in march and has been slumping down since then.
- The stock currently trades at a very strong support of .32 pounds
88 Energy (ASX:88E) is an exploration company currently exploring onshore Alaska in a prolific liquids-rich area. It was established in 1996 and is based in Perth, Western Australia. The company keeps raising money at regular intervals and has raised a total of 160 million pounds till date. The stock is a penny one and is highly untradeable due to the company profile.
Technical analysis for the stock-
It is clearly evident from the candles that the stock is highly volumeless and thus trading or technically analysing such a stock can be highly difficult. The stock made a high of .85 pounds in March but has been slumping down since then. The current trading price is .34 pounds which is highly close to the support levels of .32 pounds.
The stock has been highly sideways since 4 months now trapping all the investors who entered previously this year. This is more of a trend based stock which moves based on news and not on technical factors and since there has not been any big news since March, the stock has been trading sideways. Predicting future movement for the stock becomes difficult in such a condition.Â
A one hour time frame too shows indecisive candles due to low volumes. .50 pounds can be a good target if upside is seen but as mentioned before, such stocks are highly unpredictable.
Analysts have predicted a high upside for the stock till the year end and have given .89 pounds as the target price which is a almost 200% upside from the current levels.
Conclusion:
Even though analysts have predicted a huge upside for the stock, one should enter at their own risk as such stocks are highly unpredictable and do not follow any technical factors. From an investment Point of view, one must go through all the fundamental and th company profiles before making any decison.
