Indonesia Energy Corporation Stock News and Forecast: INDO spikes as OPEC mulls supply cuts
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UNLOCK OFFER- INDO stock spikes higher as retail traders move on from BBBY debacle.
- Indonesia Energy soared back in March in a similar fashion.
- INDO trends heavily across social media sites.
Indonesia Energy (INDO) stock was once again trending across social media financial sites as it spiked notably on Tuesday. INDO stock has priors here, having gone parabolic back in March in an epic energy stock squeeze. Now meme traders have grasped onto some bullish oil news and returned to some favourite meme oil stocks. INDO and Houson American Energy Energy Corporation (HUSA) were old favourites, and both saw notable gains on Tuesday.
INDO stock news
This is merely another momentum play, and as all momentum plays it will eventually stop and roll over. The trick is to watch for early warning signs. There is little in the way of stock-specific news here. This is rather another version of the short squeeze or pump-and-dump schemes.
Oil stocks were boosted as comments from OPEC+ were bullish for oil on Tuesday. Iran and the US may or may not manage to reach an agreement over a nuclear deal, which would see Iranian oil return to the market. This increase in supply should in theory lower prices. In response, OPEC+ is mulling production cuts if this does transpire. All that served to put a rocket under oil prices on Tuesday with WTI Crude Oil adding 4% Tuesday. This set oil stocks higher with the most notable being Warren Buffet favourite Occidental Petroleum, which closed nearly 7% higher at $73.79. This was the highest close for OXY stock in nearly four years.
INDO stock forecast
As mentioned INDO has done this before, but back in March it went parabolic up to $86. That shows just how extreme these types of rallies can get. Trying to short this is foolish in my view as there could be more momentum coming into the name. The aim as always is to manage the probabilities and risk of any trade. Using options can be a useful mechanism to do this. Buy out of the money calls if you are bullish, and when the move looks exhausted then buy out of the money puts.
There are no real support resistance levels at play in something like this despite what some may try and sell you. Stocks that spike nearly 2,000% as INDO stock did in March do not adhere to any forms of technical analysis. This is momentum trading plain and simple. Our usual red flag to watch for is a massive premarket spike that does not carry through to the main session. A green-to-red intraday flip or a close much lower than the intraday high causes an inverted hammer candle.
INDO stock chart, daily
The author is short BBBY.
- INDO stock spikes higher as retail traders move on from BBBY debacle.
- Indonesia Energy soared back in March in a similar fashion.
- INDO trends heavily across social media sites.
Indonesia Energy (INDO) stock was once again trending across social media financial sites as it spiked notably on Tuesday. INDO stock has priors here, having gone parabolic back in March in an epic energy stock squeeze. Now meme traders have grasped onto some bullish oil news and returned to some favourite meme oil stocks. INDO and Houson American Energy Energy Corporation (HUSA) were old favourites, and both saw notable gains on Tuesday.
INDO stock news
This is merely another momentum play, and as all momentum plays it will eventually stop and roll over. The trick is to watch for early warning signs. There is little in the way of stock-specific news here. This is rather another version of the short squeeze or pump-and-dump schemes.
Oil stocks were boosted as comments from OPEC+ were bullish for oil on Tuesday. Iran and the US may or may not manage to reach an agreement over a nuclear deal, which would see Iranian oil return to the market. This increase in supply should in theory lower prices. In response, OPEC+ is mulling production cuts if this does transpire. All that served to put a rocket under oil prices on Tuesday with WTI Crude Oil adding 4% Tuesday. This set oil stocks higher with the most notable being Warren Buffet favourite Occidental Petroleum, which closed nearly 7% higher at $73.79. This was the highest close for OXY stock in nearly four years.
INDO stock forecast
As mentioned INDO has done this before, but back in March it went parabolic up to $86. That shows just how extreme these types of rallies can get. Trying to short this is foolish in my view as there could be more momentum coming into the name. The aim as always is to manage the probabilities and risk of any trade. Using options can be a useful mechanism to do this. Buy out of the money calls if you are bullish, and when the move looks exhausted then buy out of the money puts.
There are no real support resistance levels at play in something like this despite what some may try and sell you. Stocks that spike nearly 2,000% as INDO stock did in March do not adhere to any forms of technical analysis. This is momentum trading plain and simple. Our usual red flag to watch for is a massive premarket spike that does not carry through to the main session. A green-to-red intraday flip or a close much lower than the intraday high causes an inverted hammer candle.
INDO stock chart, daily
The author is short BBBY.
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