Beach Energy Limited BPT.AX Extremely Attractive At $1.50Hello Fellow Trader!
View: Beach Energy Limited (BPT.AX) coiling above a daily trend break and finding support at $1.50.
In the month of August, Natural gas spot price finished up 44% and Oil up 8% to support what could be an undervalued company imbedded in the ASX during a pandemic, leaving most investors in limbo on where to invest their money.
Their full year annual report for 2020 stated NPAT (net profit after tax) of $461 Million which was down 18% from 2019, but still provided the business with a 20% return on shareholders equity.
BPT dropped 47% in the Covid sell down and is now starting to provide
Key Points:
Price holding above the 50 EMA
Could see the 21 EMA break above the 50 EMA with price action momentum
Price holding above Fibonacci 32.8% of prior major range March Low to June High
Natural Gas up 44% - Oil up 8% in August
Crossed daily trend line
Flag pattern for break out
Must watch price around the 200 EMA
RSI could break trend and range simultaneously for momentum
Key Levels:
Support – 1.40, 1.50
Resistance – 1.60, 1.70, 1.80 + 200 EMA
Entry Zone:
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 1.50
Supporting Entry – 1.50 – 1.53
The Risk:
As traders and investors, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.
IF: Price breaks below 1.45 and closes below the 50 EMA – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.
Reward / Reward Targets:
Optimal Entry $1.50 – Target 1 $1.80 = 3.75x Reward to Risk
Optimal Entry $1.50 – Target 2 $2.00 = 6x Reward to Risk
Supporting Entry $1.53 – Target 1 $1.80 = 3.4x Reward to Risk
Supporting Entry $1.53 – Target 2 $2.00 = 5.5x Reward to Risk
