Z Energy Limited (ZEL.NZX)

24 October 2017



Technical Summary: For the last year and a half the shares of ZEL have gone sideways. This is in a consolidation phase after a signfiicant uptrend. The stock is now trading below its 50-day moving average and is approaching a critical juncture. This is a juncture in the purest sense because there are two schools of thought from which this can be approached. Mean reversion traders may look at this juncture as an area of support for the stock. This is evidenced by a glance at the 5 year chart where the stock has previously found support in this zone. The other perspective is that the stock is that if the stock breaks this area of support all hell could break loose to the downside. This is again evidenced by
the 5 year chart with the most recent rally being cut short below previous highs. Traders that buy the stock expecting a reversion to the mean must be quick to cut losses if the stock breaks support in a meaningful way.

Critical juncture for the stock as it careens towards an area of historical support. Will it hold or will all hell break loose?

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