Quick Win By The Algorithm: Denbury Resources Inc. Returns 13.33% On Pop In Oil Price

Quick Win By The Algorithm

On September 22, 2017, I Know First issued a bullish 3-days forecast for Denbury Resources Inc. (NYSE: DNR). The forecast showed a signal of 45.85 and a predictability of 0.17. In accordance with the forecast, DNR’s stock returned 13.33% over this period, solidifying another quick win by the I Know First algorithm.

Denbury Resources Inc. operates as an independent oil and natural gas company in the United States. The company primarily focuses on enhanced oil recovery utilizing carbon dioxide. It holds properties located in Mississippi, Texas, Louisiana, and Alabama in the Gulf Coast region; and in Montana, North Dakota, and Wyoming in the Rocky Mountain region. As of December 31, 2016, the company had 254.5 million barrels of oil equivalent of estimated proved oil and natural gas reserves. Denbury Resources Inc. was founded in 1951 and is headquartered in Plano, Texas.

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Denbury Resources Inc. experienced a strong surge upwards on Monday September 25th.  It looked to be based on a pop in the price of WTI oil as well as technical buying.  Many short term indicators such as Relative Strength Index and Money Flow Index appeared to show oversold conditions in the very near term.  Average volume for Denbury is approximately 6.1 million shares while on September 25th, volume grew to 8.2 million shares.

This short term spike in the price could also be the result of institutional trading.  Approximately 90% of DNR’s shares are held by institutions.  If just one or two of these firms decide to add to their position or open a new one, the price could move significantly.

Current I Know First subscribers received this bullish DNR forecast on September 22, 2017

Disclaimer

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.