Oil is still squeezing on $90 per barrel with the common consensus within the industry that it will top $100 per barrel before it sees any sort of a retracement in cost. Oil production companies have felt the ebb and flow of oil prices over the last several years and appear to be once again solidifying direction and pointing to higher levels being reached in the near future.
Calgary, Alberta-based Anglo Canadian Oil Corp. (TSX-Venture:ACG) is engaged in the exploration, development and production of petroleum and natural gas. Anglo holds a 100% interest in a large land position in the oil rich Nordegg Member formation, comprising 269 sections (172,160 acres) in and around the Grande Prairie region of North Eastern Alberta.
Through the latest multi-stage fraccing techniques, Anglo is well-positioned to start extracting the vast amounts of oil that are known to be trapped in Anglo property in the shaley Nordegg Member, a known source rock in the Western Sedimentary Basin.
The Company also controls a 100% interest in a Bakken play in Southwest Saskatchewan, near the Kindersley area, in which it currently is producing heavy oil from its 20 sections (12,700 acres). Anglo hopes to add to this production from the Nordegg Member, which has produced over 600,000 barrels of oil through three vertical wells already in the area of the Anglo property.
Technically speaking, the chart established a solid support/resistance level from 30 to 35 cents throughout May of June of this year. Coming off of those levels, the price shot north to peak at $1.07, but has since retraced and even broke below the support level as the price dropped to 21 cents. Since then, however, the chart is showing bullish signs of another potential climb.
The Company’s share price rose to $0.345 in early November and, once again retraced, but has since settled to make a new higher low with support being established at $0.26, giving the appearance of a "rounded bottom," which can often be a prelude to a stronger move.
Generally reliable long term indicators, such as the MACD and the TRIX are trending back towards zero, which is commonly referred to as "the money line" because a break through turns a chart bullish. Presently, the TRIX, which reached levels as low at -2.0 in November is valued at -0.368 as the zero barrier is being quickly approached.
Another heavily followed indicator, the Relative Strength Index, is making a move to try and push above 50, which is a sign of a chart gaining quite a bit of strength and trying to turn bullish.
Indicators which are based on volume and the flow of buying a selling are showing that money has been coming into the stock on a relatively regular basis throughout the past two and one-half months. Although there have been some dips, the trend is primarily north, showing that buying pressure has been dominate.
The key to the chart making a stronger move upward is going to rest upon breaking through resistance at 30 and 32 cents. Some more resistance will follow at 33 and 35 cents, but technical traders recognize that the price per share resistance is stronger at the 30 to 32 cents area and if these can fall, the chances of the price making a new high and breaking through 35 is greatly increased.
The one caveat to the resistance at 35 is the 200-day simple moving average that is looming in that area presently. All the other shorter term moving averages are tucking nicely underneath the price per share to add strength to upward momentum, but it will take volume to increase slightly more than the approximately 200,000 shares it’s been trading each day the last few weeks to overcome the 200-day.
With the stock price making higher lows and not dipping back down to the bottom levels that were reached in late October and the alignment of the indicators at this point, odds are increased that ACG may put together a push in an attempt to challenge the resistance and try to establish a solid upward channel.
As is always reminded on AllPennyStocks.com, proper due diligence and consultation with a licensed financial advisor is always encouraged prior to making any investment decisions and the above assessments of the V.ACG technical chart are merely the interpretation of AllPennyStocks.com and should not be construed as investment advice. Technical traders and fundamental traders alike may soon be turning even more attention to this junior exploration company that is showing a great deal of promise on both levels.
