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

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.

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.

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

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.