Camber Energy has been making the rounds in the meme stock crowd the past few weeks, and for good reason. It has enjoyed a rally from 0.33 to recent peak 1.96. So what is behind the move? Lets take a look at the company:
“Camber Energy is leveraging our expertise and relationships to build a diversified organization with profitable business segments to increase stakeholder value. This balanced approach can expedite growth while reducing dependence on any particular division. Our aim is to acquire a majority interest in assets or entities with current revenue streams and realistic upside potential.
Within our Energy Division we intend to pursue opportunities recognizing the immediate dependence on current energy sources as well as the need to explore sustainable and profitable alternatives. Outside the Energy sector we intend to target opportunities with compelling metrics and scalability.”
Most recently, they have replaced the CEO with new blood. Also, they have recently signed an exclusive agreement to provide proprietary and patented carbon capture technology for all of Canada. Now lets take a look at the charts:
Camber Energy Elliottwave View:
Medium term term view from the August 2021 low. The stock has been on a steady rally since that low. Initially, it rallied into ((1)), with a pullback in ((2)) which bottomed on Sep 1. After that, a wave ((3)) rally has taken place. ((3)) found a peak on September 16 at 1.87. After that, the stock pulled back in consolidation and bottomed in ((4)) on September 20. From there, another some nesting has taken place in the blue (1) (2) and Red 1 and 2. and has broken higher today.
The RSI is presently diverging against the wave ((3)) peak. This means that the instrument is likely within the final 5th wave of the advance. As long as the divergence holds, the 5th wave view remains intact. After ((5)) peaks, a larger pullback to correct the cycle from August 20/20201 should take place. If the RSI erases the divergence, then the instrument can still be within a wave ((3)) advance, which would be more bullish and offer more extension higher.
With these meme stocks, it is important to expect extreme volatility, and to use correct position sizing.
Risk Management
Using proper risk management is absolutely essential when trading or investing in a volatile stocks. Elliott Wave counts can evolve quickly, be sure to have your stops in and define your risk when trading.
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