You Ask, We Analyze: The Bull, Bear Case For Camber Energy As Stock Risks Delisting

Zinger Key Points
  • The future of Camber Energy’s stock is dependent on its financial results being filed with the NYSE, and until that occurs, the stock may continue to experience sideways trading as both bulls and bears consider the high risk of taking a position in the company.
  • Camber Energy has been trading in a tight range between 75 cents and the 88-cent mark since April 22.

On Sunday evening, Benzinga asked its followers on Twitter what they’re buying at the open on Monday. From the replies Benzinga selected one ticker for technical analysis.

$TEVE TRADE$ (@charspop28) is buying Camber Energy, Inc CEI.

The diversified energy company is not in compliance with the NYSE American LLC's listing standards and risks delisting on May 20 if Camber Energy is unable to file a number of outstanding financial reports.

The Exchange originally gave Camber Energy until April 1 to file its Form 10-K for the nine-month transition period ended Dec. 31, 2020; form 10-Q for the period ended March 31, 2021; form 10-Q for the period ended June 30, 2021; and form 10-Q for the period ended Sept. 30, 2021.

Camber Energy was unable to meet that deadline, but was granted a seven-week extension.

On May 1, Camber Energy posted a video to Twitter where CEO James Doris addressed the company’s delayed financial reports. “If you’re prepared to accept the pat on the back when you do a good job, you’ve got to be prepared to take it on the chin when you screw up,” he said, speaking of the missed timelines he had previously given for the filings to be complete.

Doris attributed the delinquency to the time-consuming process of the financial results being reviewed, updated, amended and audited, for which he faulted Camber Energy’s accounting firms.

“I’ll take it on the chin now but later it’s going to be someone else’s turn,” he said.

The future of Camber Energy’s stock is dependent on its financial results being filed with the NYSE, and until that occurs, the stock may continue to experience sideways trading as both bulls and bears consider the high risk of taking a position in the company.

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial. 

The Bull Case for Camber Energy: Camber Energy has been trading in a tight range between 75 cents and the 88-cent mark since April 22.

Bulls want to see big bullish volume come in and break Camber Energy up from the 88-cent level, which would be the first sign the stock may begin a new uptrend. The long upper wicks on April 28 and May 5 indicate there are sellers at that level, however.

Camber Energy has resistance above at $85 cents and $1.

The Bear Case for Camber Energy: Opposite to the bulls, bearish traders want to see Camber Energy close a trading session below the 75-cent mark, which could indicate a downtrend is on the horizon. Bearish traders will want to see a break down from the sideways range on higher-than-average volume to indicate the downturn has been recognized.

Camber Energy has support below at 70 cents and the 58-cent mark.

See Also: How to Read Candlestick Charts for Beginners

Posted In: Penny StocksMoversTrading Ideas