The street is paying close attention to this short-term play with massive volume and almost 100% gains by lunch time on Thursday, September 24, 2020. Just energy has been in a free fall for the better part of a decade. However, this stock has also been a real winner for those traders who know how to read technicals.
As one can see from the above chart this is not a long-term play, but if positioned properly this is a day trader’s dream and today is just the kind of day that can produce massive upside potential. The downward pressure we have seen over this month is coming off a press release dated September 03, “Just Energy Group Inc. (“Just Energy” or the “Company”) (TSX:JE; NYSE:JE), a retail energy provider specializing in electricity and natural gas commodities and bringing energy efficient solutions and renewable energy options to customers, today announced that it has received the final court approval required to close the Company’s recapitalization plan (the “Recapitalization”) and subscriptions totaling approximately C$52 million through the equity subscription option included in its Recapitalization, with the remaining approximately C$48 million to be provided by the backstop parties.”
Upon the issuing of the press release just Energy Group Inc. fell from $9.90 per share to $.27 per share in just two weeks, creating an incredible bounce play. Wall Street is currently going all in on this bounce, but the question remains, is this a true bounce play with longevity or simply a head fake that will continue it’s descent into the basement?
The street is watching closely to see if Just Energy can maintain the support above the critical $.4132 price point to ensure a new bottom to create a lasting bounce play. If the stock can perform above that threshold while making new highs in the upcoming days, we could see an incredible run.
Just Energy released press yesterday, September 23rd, stating, “The Company has obtained all necessary approvals and may now proceed with the closure of the Recapitalization Transaction. The Company expects to close the Recapitalization Transaction on or about September 28, 2020.” The short-term future for this energy company could be bright as a lightbulb, so keep a careful eye on this day trader’s dream.
