Allied Energy Corp. (OTCMKTS:AGYP) rallied 9.76% Wednesday, rebounding from a pullback Tuesday. The stock much like the overall oil & gas market has experienced above average volatility recently.
Oil & gas stocks have been on a roller coaster ride as investors continue to receive simultaneously bullish and bearish reports on the commodity’s future. The U.S. Energy Information Administration (EIA) reported that American crude inventories fell last week for a third consecutive week and overall fuel demand increased to the most since March 2020, boosting prices by around 10% through Wednesday; generally a bullish signal.
On the other hand, fresh COVID-19 outbreaks fuelled by the Delta variant of the coronavirus are raising concerns about the strength of the economic recovery globally.
The good news for oil & gas traders is volatility creates opportunity, and AGYP investors experienced this first hand on Wednesday. There is reason to believe the potential remains for the company as it has fundamentally been on an upward trajectory according to recent press and company tweets.
Closing in on production at their Annie Gilmer and Green Leases in historically oil-rich North Texas, the company filed encouraging reports with OTCMarkets. Mark McBryde, the Petroleum Engineer who conducted the study, found $2,944,900 of proved oil and $18,536,600 worth of probable and possible oil at the companies Green Lease and $6,704,900 proved as well as $5,489,900 probable and possible reserves at the Annie Gilmer Lease. These reports factored the price of oil at $46.26. The current price of oil is $67.92, meaning at today’s prices these potential reserves would be worth 46% more than their reported value.
Barchart sees the company’s 20-200, 50-100, 50-150, and 50-200 Day MACD Oscillator as bullish, the same site sets the next resistance points at $0.336, $0.362, and $0.395. Support is at $0.277.
