Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading
Camber Energy Inc (NYSEAMERICAN: CEI) stock price rallied 45.8%, reversing the 5-day downtrend that had seen it shed over 80% of its value to trade for less than a dollar.
Today’s rally is a classic relief rally after an over 80% decline that had formed a parabolic shape.
However, investors should keep in mind that the rally could have been driven by the publishing of Viking Energy’s financial results for the six months that ended September 30, 2021.
According to the report, Viking Energy generated $19.79 million in revenues, but information about its profits or losses was not immediately available.
Camber Energy is not yet out of the woods, given that the Schall Law Firm said that it is investigating the oil company and welcomed submissions from shareholders who have suffered losses.
The law firm is trying to establish whether Camber Energy issued false and/or misleading statements and/or failed to disclose information pertinent to investors.
The investigation is based on the damaging report issued by Kerrisdale Capital detailing the oil firm’s alleged wrongdoings, which we covered in my last article on Camber Energy.
Today’s rally could turn into another short squeeze if it is sustained over the coming days, given that over 20% of Camber Energy’s outstanding shares are currently sold short.
Camber Energy is still popular among retail investors, and I would not rule out another short squeeze at this stage.
Meanwhile, most investors should stay away from this stock, given the accusations levelled against the company. However, the stock is attractive to day traders who want to profit from its massive rallies and downtrends quickly.
You should remain aware of the risks associated with the stock if you decide to trade it.
*This is not investment advice. Always do your due diligence before making investment decisions.
Camber Energy stock price.
Camber Energy stock rallied 45.84% to trade at $1.33, rising from Wednesday’s closing price of $0.91.
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