(AMPY), BP plc (NYSE: BP) – Stock of the day for pre-market prep: Amplify Energy Corp
Benzinga’s PreMarket Prep airs every morning from 8 a.m. to 9 a.m. ET. During this fast-paced and highly informative hour, traders and investors tune in to get the top news for the day, the catalysts behind these moves, and the corresponding price action for the upcoming session.
Each day, the show will cover at least 20 stocks determined by co-hosts Joel Elconin and Dennis Dick as well as producer Spencer Israel.
Whether you are a long-term investor, a swing trader, or even a short-term trader who holds positions overnight, news can make or break you. When you hold positions over the weekend, there are two possible days of breaking news that could disrupt your trading plan.
An excellent example of this dynamic takes place in the actions of Amplifier Energy Corp (NYSE: AMPY), which is the pre-market prep day action.
The company: Amplify Energy Corp is an independent oil and gas company engaged in the acquisition, development, operation and production of oil and gas properties in the United States. Its properties consist of old and mature oil and natural gas fields.
The assets consist primarily of oil and natural gas producing properties located in Oklahoma, Rockies, Federal Waters off Southern California, East Texas / North Louisiana and Eagle Ford .
Two-week move No news: After closing the Friday September 17 session at $ 4.18, the issue experienced a small decline, then a smaller day up, and ended the September 21 session at $ 3.87.
From that level it embarked on an eight-day rally, with the movement high ($ 5.78) and movement closing ($ 5.75) during Friday’s session. The high was just below its February 2020 high of $ 5.89.
Bad news: With the boat fully loaded with long momentum, the show shocked these investors over the weekend. This news, being an oil rig operated by the company, was responsible for an oil spill at Beat Field, off the coast of southern California. In response to the spill, the company suspended production and pipeline operations at the facility.
Preparation before marketing: When the issue was covered on the show, it was trading in the $ 2.30 zone and the pre-market low ($ 1.85) had already been set. Dennis Dick reiterated a familiar saying on the show: “Fundamentals trump technique and that’s not a better example of that. Just throw the techniques out the window.”
The author of this article has attempted to inject some techniques into the chaos. One or more significant buyers at $ 2 and below have been identified based on the pre-market price action on the show.
On the positive side, it was difficult to predict where a rally would end. The reason for this is that short-term traders who have not yet had the issue long may be willing to buy shares as low as last week’s price and scalp long before the issue is issued. hits the low end of the Friday range ($ 5.37).
Price action: The issue continued to rebound in pre-market trading and opened well above the pre-market low of $ 2.88, which turned out to be just $ 0.09 from the lower current. The follow-up rally took the issue to $ 3.61 and then reversed the price. After being suspended for trading, the share is around $ 1.56 per share at the time of publication.
Moving forward: It can be tempting to try to prolong the problem and hope that the extent of the spill is not so severe and that the company does not face any legal action that may result.
However, if one is to use priority to guide one’s investment decision, there is a chart to consult. In April 2010, during the Deepwater Horizon oil spill, PA (NYSE: BP) was trading in the $ 60 zone. After the recent two-week rally on the show, it went from $ 25 to over $ 28 in Monday’s session.
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