This year, a huge number of energy firms, including Canadian oil and gas companies, suffer losses on the markets. It seems they reach the bottom these days when many energy stocks are falling to 52-week lows, some of them even setting their all-time lows.
The shares of Connacher Oil and Gas Limited (TSE:CLL), (PINK:CLLZF) follow no different pattern, unfortunately. The continuous downfall of the stock has accelerated further more since mid-August. As a result, this week it sank to never seen before depths:
- On the American Market, the stock marked a 5-year low of $0.2284 on Monday;
- The same day, on the Canadian Market, CLL slipped to an all-time low of $0.235.
Yesterday’s session on the Toronto Stock Exchange (TSE) gave some signs for a positive change, though. Connacher’s shares climbed more than 19%, with the rise confirmed by the big volume of almost 7M.
The last two candlesticks formed something similar to the Bullish Harami Pattern. The white body during the last session is probably a sign that the sellers’ power is decreasing. The Harami has however a low reliability – without a strong confirmation we cannot claim that the current negative downtrend has really reversed. Quite often, the market enters into a congestion phase after such a pattern.
The decline of the company’s shares is perhaps related to the sinking price of crude oil, which has been going down over the last two months. The same holds true for the price of natural gas.
At least, the company is financially stable, with a cash balance exceeding $75M, as stated in the latest press release dated Sep. 30. However, Connacher is accumulating funds mostly by selling its assets, and we can read in the announcement this trend is going to continue in the future.
