News & Analysis

Petro Matad’s share price retraces – is it a buy? (MATD)

16 May 2018 | by: James Moore

Petro Matad (LSE:MATD) released an operational update on Monday and the share price rose 4% to 13.15p, but there has subsequently been some profit-taking since. The stock is currently sitting at 11.2p and looks to be approaching a support level at around 10.85p. Is this a buying opportunity?

The retrace could offer a good entry price for those on the sidelines although there have been two failed attempts to break the recent 14p high – often a share will retrace a little further in search of strong support after identifying a meaningful resistance level. Should this happen, 10p looks to be a decent shout, especially with a rising 200 Day Moving Average (DMA) approaching this level too. However, the share would then be in very oversold territory and that doesn’t really correlate with the current strong sentiment for the stock.

Wherever the support level is, the Relative Strength Index (RSI) has already dipped significantly on this retrace to provide headroom for a good run on the next upward move.

Author: Stuart Langelaan

Disclosure: The author does not own shares in the company mentioned in this article

Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

    More News & Analysis

    European economy grows 2%, ending double-dip recession

    Europe emerged from a double-dip recession in the second quarter with stronger than expected growth of 2.0% over the quarter before, according to official figures released Friday, as southern European economies previously hard hit by the pandemic showed surprisingly strong results.

    Air France-KLM reports huge Q2 loss, sees signs of recovery

    French-Dutch airline group Air France-KLM said Friday that the “first signs of recovery are visible” in bookings amid easing pandemic travel restrictions as it reported a second-quarter net loss of nearly 1.5 billion euros ($1.8 billion).

    Is Disney a good investment?

    Disney is one of the biggest and most recognised companies in the world, and their stock has performance has been strong after the release of Disney+, but does Disney’s stock represent good value for the retail investor?