(Asx: BPT) | Beach Energy | Analysis

Feb 28, 2021

We bought in 17/02

Sector: Energy

Beach Energy is an ASX listed, oil and natural gas, exploration and production company headquartered in Adelaide, South Australia.

Beach’s asset portfolio includes ownership interests in strategic oil and natural gas infrastructure, such as the Moomba processing facility and Otway Gas Plant, as well as a suite of high potential exploration prospects.

Beach has established a world-class operated oil business on the Western Flank of the Cooper Basin, and has grown to become Australia’s largest onshore oil producer.

The positive side on this small/medium cap is that unlike some of its big peers, Beach has an active operated drilling program focused on key Western Flank play fairways, and company continues to develop our acreage across the Cooper Basin.

Despite some lower than expected results the company still conducting drilling programs offering multiple options to continue growing.

We believe at current SP trading under SMA, there is a good opportunity for those who are looking at getting exposure on oil and gas.

✅ Macro economics is favourable as investors bet the sector is prompt to continue recovering from COVID-19.

✅ 8% rage on “hanging man candle”indicador was formed yesterday upon company’s announcing of government approval for Killanoola licence to be transferred to Red Sky.

* A hanging man is a type of bearish reversal pattern, made up of just one candle, found in an uptrend of price charts of financial assets. It has a long lower wick and a short body at the top of the candlestick with little or no upper wick. In order for a candle to be a valid hanging man most traders say the lower wick must be two times greater than the size of the body portion of the candle, and the body of the candle must be at the upper end of the trading range.*

✅ SP trading 10% under SMA giving a relatively discounted price.

???? Trading under SMA requires stop loss.

???? Heiken Ash is red and SP needs to consolidate to validate the reversal.

Entry point $1.65

Target: $2

Profit: 20%

Weigh on Portfolio: 7%

Lead time: 1-3 months.

Stop loss: $1.47

⚠️ What to watch: next couple trading days to be on the green and above the “reversal candle” in order to consolidate a full confirmation.

Disclaimer:Note that although we have been investing in the Australian Stock Exchange and other markets over 10 years, anything you read within this group is NOT financial advise; it is general information only and we strong recommend to consult a financial adviser before making any investment decision that could have significative impact on your wealth*