Vermilion Energy Inc. ( VET) is a Canadian oil and gas firm. The company is focused on the exploitation of light oil and liquids-rich natural gas conventional resource plays in North America, and the exploration and development of conventional natural gas and oil opportunities in Europe and Australia.
In the wake of OPEC+ move to cut production, let's check out the charts and indicators of VET.
In this daily bar chart of VET, below, we can see that prices have tripled in the past 12 months. Impressive move to the upside from around $10 in November to around $30 in late August. Prices have stayed above the rising 200-day moving average line for much of the past year and the recent break of the line last month was quickly reversed. The trading volume has increased since February and that is a positive as more traders and investors have bought.
The On-Balance-Volume (OBV) line has risen from November as traders have been more aggressive buyers with heavier trading volume on days when VET has closed higher. The Moving Average Convergence Divergence (MACD) oscillator just crossed to the upside from below the zero line for a cover shorts buy signal.
In this weekly Japanese candlestick chart of VET, below, we can see a three-year bull move. Prices are trading above the rising 40-week moving average line. There are lower shadows at the two most recent tests of the 40-week line telling us that traders rejected the lows.
The weekly OBV line has stayed strong for the entire advance to date. The weekly MACD oscillator is correcting within a longer-term bull move.
In this daily Point and Figure chart of VET, below, we can see an upside price target in the $31 area.
In this weekly Point and Figure chart of VET, below, we used close only price data with a five box reversal filter. Here the software yields a longer-term price target in the $73 area.
Bottom line strategy: Traders could go long VET at current levels risking to $17. Add to longs above $26.19. $31 is our first upside price target.
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