Every stock trader and investor is on a constant quest to find value opportunities for entry into a stock or for adding to a portfolio. Some look for the technical components to aid in the decision while others look for opportunities based on fundamentals. When the two can be combined, the mix, especially if coupled with news, can often act as a catalyst to ignite investors’ attention.
Such just may be the case for Scottsdale, Arizona-based EGPI Firecreek, Inc. (OTCBB:EFIR) as the technical chart appears to be finding a bottom just below its all-time low of $0.0014. EGPI Firecreek is a multi-faceted company as it is focused in the D.O.T. Construction and Intelligent Traffic System markets through South Atlantic Traffic, Inc. alongside its wholly-owned subsidiary M3 Lighting, Inc.
In the oil and gas arena, the company has oil and gas production with an emphasis on acquiring existing fields with proven reserves, the rehabilitation of potentially high throughput oilfields and resource properties and inventories through its wholly-owned subsidiary Energy Producers, Inc., and for oil and gas servicing business through its wholly owned subsidiary Chanwest Resources, LLC.
Today, the Company announced the discovery of a significant oil & gas reserve found at the location of their recently acquired oil and gas property known as the Tubb Leasehold Estate located in the AMOCO/CRAWAR Field in Ward County, TX. As a result of the discovery, EGPI intends to rework one well in order to cap the currently producing reserve and coming up hole to drill at a shallower depth which is showing significant gas and oil deposits.
The Company believes that these actions will increase production of both oil and gas in addition to lowering repair costs and maintenance as a result of drilling at a shallow depth, thus maximizing the potential of the property.
Technically speaking, this news hits as the stock chart appears to be trying to form a bottom. The EFIR chart has been on a prolonged, multi-year slide that has produced little in the way of a sustained reversal, although several smaller bounces have been demonstrated.
Over the last two weeks, the chart is giving hints that it is once again going to take a shot at finding a "true bottom" as a rapid double bottom has happened with the share price touching the all-time low on several occasions, but promptly pulling back up to establish $0.0014 as a solid area of support. The bounce during the second week of March saw the share price pop more than 100% to touch $0.0036.
Today’s news resulted in a gap at the open as shares surged forward immediately to $0.0019 after yesterday’s close of $0.0017 and ran quickly to $0.0027 before pulling back in late morning trading to find a comfortable channel in the area of $0.0021.
Classic indicators on the daily charts such as the Moving Average Convergence/Divergence are showing signs of bullishness and, by trending right on the zero line, are in a position that often supports a climb from the bottom.
The Relative Strength Index is climbing quickly from oversold areas and nearing the bullish marker of breaking through 50, further supporting momentum coming into the stock chart. Volume has spiked with nearly 40 million shares trading hands in the first hour of trading; providing liquidity and demonstrating the attention that EFIR is getting within the trading community.
The chart does not have an easy path in front of it as resistance comes into effect at the $0.0025 mark which the share price is still battling with this morning, but if that can be broken, the next major resistance won’t try and slow the upward momentum until the area of $0.0037; the same area that knocked it down last week.
There are never any assurances in any manner in the stock market as to how a stock will perform and technical analysis is merely another tool to help gauge movement and try to increase the odds at success. While bottom plays can sometimes feel like trying to "catch a falling knife," the mix of news and technicals can sometimes lead to solid share movement.
Whether this will be the case for EGPI Firecreek is yet to be seen, but it appears this morning that it is once again trying to define a bottom for the value of its shares. Due diligence is, of course, required and encouraged, also these are merely the evaluation of AllPennyStocks.com, and consultation with a financial advisor before making any trades is a wise move.
