Xcite Energy breaks out. SBM Adds to Conviction Buy position

1 mins. to read

After seemingly being stuck at 77p-78p for weeks with warrants due to be exercised, Xcite Energy has suddenly perked up with a 6% rise to 85p. There’s been plenty of rumours of farm-in’s with BP, Statoil etc and precious little news out from the company on the extended well test in the Bentley Field for over 2 weeks now…

Meanwhile, volume is picking up and something looks to be afoot perhaps? Where volume goes – price generally follows in the AIM oilers.

Take a look at the 2 charts below that illustrate clearly someone getting in this morning. Knowing how leaky the markets are, there is always a reason for such moves and, given the woeful fundamental undervaluation of the stock and the clear chart breakout that indicates a move to 120p we have added to our Conviction Buy position (called at 73p on the 5 Jul 2012) today.

Intra-day chart

YTD Daily chart

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1. A diversifed yet concentrated Oil Explorers fund

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