VELESTO ENERGY BERHAD (5243:KL) earnings still volatile despite new Petronas contracts
Shayne Heffernan, CEO and Founder of Heffx remains cautious on Velesto Energy Bhd’s (Velesto Energy) performance despite securing four fresh jack-up rig charters worth US$105 million (RM432 million), which have tenures of 1 year with 2 annual extension options, from Petronas Carigali.
The contracts are US$25.4 million for Naga 2 and Naga 3, both commencing in April/May 2019; US$26.2 million for Naga 5 commencing in April/May 2019, and US$27.6 million for Naga 6 commencing in June/July 2019.
In a filing with Bursa Malaysia yesterday, it said the contracts for the Naga 2, Naga 3 and Naga 5 jack-up rigs, with an estimated contract value of RM105.07mil, RM105.07mil) and RM108.08mil, will commence in April/May 2019.
Meanwhile, the Naga 6 jack-up rig services contract worth RM114.11mil will commence in June/July 2019.
It said the duration of the contracts is one year, with the option of an additional one year plus a one-year extension for each of the contracts.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 0.35.
The projected lower bound is: 0.29.
The projected closing price is: 0.32.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 3 black candles. During the past 50 bars, there have been 19 white candles and 18 black candles for a net of 1 white candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 76.9231. This is not an overbought or oversold reading. The last signal was a buy 5 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 67.11. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 25 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 231.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 2 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 23 period(s) ago.
Rex Takasugi – TD Profile
VELESTO ENERGY closed up 0.010 at 0.315. Volume was 253% above average (trending) and Bollinger Bands were 52% narrower than normal.
Open High Low Close Volume___
0.310 0.320 0.310 0.315 74,205,696
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 0.30 0.28 0.26
Volatility: 31 70 58
Volume: 20,547,232 28,416,724 18,806,660
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
VELESTO ENERGY is currently 22.1% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into VELE.KL (mildly bullish). Our trend forecasting oscillators are currently bearish on VELE.KL and have had this outlook for the last 4 periods.