SilverBow is an excellent candidate for trend investing with 94% accuracy

By: Motiur Rahman
Motiur Rahman
Md Motiur is a Financial Analyst at Invezz covering the North American, European and Asian stock markets. He has… read more.
on May 28, 2022
  • SilverBow Resources gained 16.92% this week.
  • The stock is rated a strong buy for trend investors.
  • It is a good stock for quick short-term gains but requires close active management.

SilverBow Resources Inc. (NYSE:SBOW) gained 16.92% this week. The stock has been gaining since oil and gas prices began rising. From April 2021, the stock emerged as a strong trend trading stock. Investors need to make the trend their friend when dealing with this stock.

SilverBow Resources is rated a strong buy by various analysts and research houses, including Zacks Research. This is despite having losses on the financial statements. Support for the stock means that investors expect the stock to emerge from the loss-making zone. That is possible because of the trend in oil and gas prices.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

The more important fact about the stock is the PE ratio of only 2.98. This is dirt cheap for investors who want to speculate on the energy segment. Many of the companies in this industry are trading at PE ratios of 10. With SilverBow Resources, therefore, there is a huge opportunity.

SilverBow Resources on a 94% reliable trend

Source – TradingView

SilverBow is on a highly reliable upward trend channel. The channel is able to correctly predict about 94% of price movements. The trend has clear buy and sell signals. It serves well the investors willing to go technically long or short on the stock. 

This week’s price appreciation by 16% is an indication that the stock will potentially rise. It could jump above the upper limit of the channel. We set a price target at $42 within the coming week. The current price is $38.84. After this, the stock will correct to $32 before gaining again.

Summary

SilverBow Resources is a strong buy. Investors can reliably follow the trend for short-term gains. The analysis projects a rise to $42 within the next 7 to 11 days.

Where to buy right now

To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:

  1. Etoro, trusted by over 13m users worldwide. Register here >
  2. Capital.com, simple, easy to use and regulated. Register here >

*Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.