Cirrus Energy Corp. (TSX-Venture:CYR), a Calgary-based company, is engaged in the exploration, development and production of petroleum and natural gas properties with a particular emphasis on the Netherlands and United Kingdom sectors of the North Sea. The Company has developed a broad portfolio of interests in exploration and development through twenty offshore blocks combined between Dutch and UK sectors in this area with operations currently ongoing in eleven of the Dutch sectors.
Through these interests, Cirrus adds to its growing cash flow via gas production that has been continuous since September of last year in two of the Netherlands projects. In addition, it was announced yesterday that the Company, through its subsidiary, Cirrus Energy (Trinidad) Ltd, has entered into a definitive asset sale to sell 49% of its non-operated interests in the operatorship agreements relating to the Coora Field in the Republic of Trinidad and Tobago to Touchstone Exploration Inc. The proceeds of the sale will equal $3.5 million in cash, less traditional closing costs. Closing of the transaction is expected upon all formalities being satisfied which is anticipated within the next three months.
From a technical standpoint, the CYR chart is well off its 52-week high of $3.24 as it is currently trading today at 70 cents but has moved up after closing at 67 cents on Wednesday. What makes this chart particularly appealing is the solid support level that has been established in the area of $0.58 to $0.60. Back in July, the price per share touched these levels and quickly rebounded to $0.75 before sliding back down (and briefly slipping below) the support where it then climbed to nearly $0.90 in September. Once again, at the beginning of November the price of each share of CYR found itself at these levels and has now put together four straight green days to climb to its current price today.
While the short term charts gave hints that another bounce was going to happen off the recurring support level, a longer term perspective shows that the chart may be ready to try and continue the move even higher than last time. The 50 day moving average is being surpassed with today’s move, which is a bullish indication of things to come. Additionally, all the shorter term moving averages are underneath the share price to provide additional support. From a historic resistance level, $0.80, which is still an additional 10% approximate gain from current levels, will provide the next pps resistance, while the longer term technical resistance will come from the previous high of $0.89.
Other aspects of classic technical analysis, such as the MACD and the Full Stochastics are falling right in line with the possibilities of a run at the old high. The MACD was trending north before the last run to nearly $0.90 and has once again demonstrated a bullish cross of the signal line to continue its uptrend that now dates back into June. Of particular interest is the Chaikin Money Flow which is about ready to cross back through zero, a bullish move that shows selling pressure has been overtaken by buying pressure. Additionally, classic long-term, smoothed indicators such as the TRIX, are adding additional support to the concept of a stronger move of a larger perspective as a signal line cross appears to be imminent.
Overall, the Cirrus Energy chart has a bullish look to it. The Company has legitimate operations and several cash-producing assets in its portfolio which it uses to regularly generate cash flow. From a technical standpoint, the chart is in a classic multiple-bottom position and is once again drawing upon a strong support level and making a climb. The chart is providing many indications that it is going to take a run at the high from the last climb a couple months ago, which is still approximately 22% away, even with the move today. As always, this is merely AllPennyStocks.com’s interpretation of the CYR chart and we strongly encourage all investors to conduct their own proper due diligence before making any investment decision and consult with a financial advisor.
