Torchlight Energy Resources Inc. [NASDAQ:TRCH] prices rallied 9.97% on Thursday.
With a current price of $0.29, TRCH is active in the Oil & Gas E&P industry and it looks to be on-track for a five-day slide of -0.45%.
In addition, TRCH’s high over the last year is $1.13 and the low is $0.21. Over the last two 52 weeks, the company is trading -74.14%, while the S&P 500 is trading 0.5%.
The Price is right
Holding a Market Cap of $26.28 million, Torchlight Energy Resources Inc. has seen a trading range over the last year of $0.21-$1.13.
For the last five days, TRCH is down from its last closing price. The average shares trading hands each day is 1.31M, with average 10-day volume coming in at 0.63 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for TRCH. When we apply the Elder Force Index to Torchlight Energy Resources Inc., we are seeing an Elder Force Indicator number of 81311.04.
Recent Performance
The company’s enterprise value has gone from $50.02M to $54.31M quarter-over-quarter. This could be an inflection point for the company, but either way we believe you should be adding them to your watchlist.
In the last quarter, TRCH made a profit of -3.03 million. Torchlight Energy Resources Inc. also saw quarter revenue growth year over year of -41.81%. In addition, the company has operating cash flow of -$1.38 million.
Technical Analysis
Looking at popular technical indicators, the company’s 5-day moving average is 0.2681 compared to the 50-day moving average of 0.2774. So, traders might want to tread carefully if they are going to bid.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. TRCH currently holds a 9-day RSI of 68.29%, while 100-day RSI stands at 46.07%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. TRCH’s 9-day MACD is 0.0076 and the company’s 100-day MACD stands at -0.0536.
Inside Moves
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 25.45% by insiders and 7.93% by institutions.
Conclusion
Overall, the recommended rating for TRCH is Hold. Currently, the company has 0 analysts watching the stock, and the average quarterly earnings estimate is 0.
