Sapura Kencana Technical Analysis SKpetro

Sapura Kencana was one of the darlings of the oil and gas industry.  Unfortunately with oil hitting all time lows, their outlook looks dim.  I won't mince words, bottom catching is usually a fools game, especially a stock with low dividends.  As goes the saying, if you look around the room and don't know who the sucker is, the sucker is you.

I'll just have you know, a few oil stocks have looked technically strong off a bottom, especially in the US, but technicals seem to have failed this industry as bottoms have not held up.  I won't be surprised if the same goes for SKpetro.  All in all I'd skip this stock, save your money for another rainy day.

But for you people who REALLY want to get into the stock, I don't mind thinking about a long position with play money of course :)

1.We seem to have found a bottom at RM 2 a share.  Is this a bottom that will hold up?  I think it may.  at RM 2.61 is a 30 percent rebound off the lows, and given the nature of the rebound at this particular price, I think the outlook would be good.  I'd cut and run from a long position at a price lower than RM 2 a share, but seeing how this is an oil and gas stock, bottoming technicals seem like having a 50-50 chance of holding.