Deepika- MATD stock has seen huge turbulence this year and has wiped off more than 20% of its investors’ wealth in just 2023.
- The stock currently stands at a yearly strong support and is showing some signs of recovery.
- The current setup still looks weak but some buying can be seen in the past 2 trading sessions.
Petro Matad Ltd. is a holding company that, through its subsidiaries, engages in oil exploration. Its operations include blocks IV and V, and block XX. The company was founded on August 30, 2007, and is headquartered in Ulaanbaatar, Mongolia.
Financials for the company look very weak as of now. Over the past few years, the company has constantly had a negative net income, making it a huge negative for its stock.
Technical Analysis
Over the months, the stock has been trading in a fixed zone between 0.0336£ and 0.05£. Only once did the stock go below this level and it was immediately backed by very strong buying.
The stock is currently in a huge bear trap and it was facing a sharp selling until it touched its support at 0.0336£, from where it saw a very weak recovery. The stock has not yet breached the current support, which is a big positive from the view of its investors. As long as the stock stays above this level, there is no need to worry or panic.
If the stock shows stronger signs of recovery from here, an entry can be considered around 0.0425£ if there are strong buying volumes. 0.05£ remains our first target and a major resistance as of now.
If, however, the stock is unable to sustain the current levels, a huge downside can be expected. 0.0250£ is the first target in case of a downside from the current levels.
An hourly chart shows ill-shaped and inconsistent candles in the stock which is considered a huge red flag in investing.
The stock is currently dragging sideways on its support and no move should be made until there is a confirmation of a move on either side. Since the stock is a penny stock, operational activities can be possible signs of which are already visible in the chart.
The current setup does not look very strong and the stock can turn to any side from the current position. One must wait for a strong confirmation before making an entry.
After the stock price has cooled down and sellers have exited, investors can consider making an entry. The next few weeks look highly crucial as we will get more ideas about the future of the stock in the upcoming days.
Conclusion
The stock currently stands at very crucial levels. Traders should be highly alert as a big move might come at any time for the stock. From the view of an investor, things do not look very bright as of now and one must give the stock more time to reach comfortable levels before making an entry.
Important technical levels
- Major support levels: .0336£ followed by .0250£.
- Major resistance levels: .05£ followed by .0558£.
Disclaimer
The views stated by the author or any person named in this article are purely for educational purposes and do not establish financial or investment advice. Investing or trading in instruments like stocks and crypto involves financial risk and should not be done without doing proper research and analysis.
