Camber Energy price analysis: Thursday’s top short squeeze play

By: Ansh Rathod
Ansh Rathod
Ansh is a tech geek and loves to stay up to date with all the different innovations in the… read more.
on Oct 7, 2021
  • Camber Energy (NYSE: CEI) stock was higher by more than 80% on Thursday.
  • This isn't the first time Camber Energy stock soared in value.
  • $1.80 is a key level to watch

Camber Energy (NYSE: CEI) has blown in price by over 80% on Thursday. It was recently seen trading at $1.67, up from the closing price of $0.91 on Wednesday. Trading activity has increased massively as the traders are looking for an opportunity to take advantage of another short squeeze.

Should you buy Camber Energy now?

When a short squeeze takes place, there is a huge increase in the price of a share and this can be very attractive as huge profits can be made for timely traders and investors. However, there is no certainty as to when the price might correct, exposing many buyers stuck with very high buy-in prices.

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Such was famously the case with AMC Entertainment Holdings, Inc. (NYSE: AMC) when the price went from $70 to $35 in just one day.

Let’s start with the weekly chart below to see if investors should buy Camber Energy amid the recent momentum.

  • After the first short squeeze, CEI crashed back down to $0.91 from its highs of $3.84- an 80% fall.
  • On Thursday, the RSI fell to its support and a bounce back should be seen. Moreover buying volumes are looking very strong showing that it might be heading for another breakout.
  • CEI took support from its 200 day moving average on Wednesday and is still looking strong as it is able to sustain above the moving average.
  • However, a small pullback could still be seen as it has almost doubled in price in just a day so before taking a long position a pullback could be waited for.
  • If the momentum is seen again the stock should easily be able to achieve the target price of $2.6.
  • CEI is looking very weak below the low from Wednesday of $0.91 thus that level is a crucial demand zone for CEI.

Now, let’s move on to the daily chart below.

  • On Thursday CEI got rejected by the supply zone of $1.80, however, with the volumes that it is carrying it should break out very soon.
  • Long positions should be avoided until a breakout over the supply zone of $1.80 is seen.
  • CEI should be able to sustain the zone, only then will it be able to prove that it has a chance at a new all-time high.

Conclusion

CEI stock still has the potential to rise however it will have to start sustaining above the levels of $1.80 before it tries to head for a new all-time high.

A long position can be taken after the pull back from the huge move on Thursday, however, caution must be taken as CEI is extremely volatile and can halve in value in no time.

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