NWE is holding up well again considering another sell-off in the energy sector, but it’s doing so on ever diminishing volumes. This would tend to suggest that if the US market is weak tomorrow, we may start to witness some weakness in NWE. Since current volumes are low or well below average, then any NWE selling is likely to push the SP quickly towards 10c as happened 4/5 weeks ago.
Looking at other oil stocks today, many with good announcements have continued to fall, so I think the current outlook for NWE definitely spells weakness unfortunately. I have my doubts that the US market will pick up much (if any) and it’s more likely to trend down again, so all eyes on NWE as it’s one of the few oil stocks holding up at present.
This is certainly a good sign when the market turns around, but the difficulty is knowing when that will occur. I think tight stop-loss orders would be important at this stage.
Mensa.
NWE Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
