Why Eco-Stim Energy Solutions Inc. (NASDAQ:ESES) can’t be predicted?


Shares of Eco-Stim Energy Solutions, Inc. (NASDAQ:ESES) are currently poised at -19.54% from the open today and are trading at $1.40. More than 8,057,430 shares have exchanged hands compared to an average trading volume of 179.44K. At the current pps, the market cap stands at $21.13M. The stock prices of Eco-Stim Energy Solutions, Inc. (NASDAQ:ESES) are currently trading at -54.25% below its 52 week high and 112.12% above its 52 week low.

Eco-Stim Energy Solutions, Inc. (NASDAQ:ESES) has been in the news for all the right reasons. Recently, Eco-Stim Energy Solutions, Inc. (NASDAQ:ESES) announced that the Company has been awarded a two-year contract with the largest operator in Argentina for their tight gas completions program. This contract will provide a guaranteed minimum level of compensation to EcoStim (roughly 40% of the contract value) although the operator expects the completion program to generate over $50 million in completions work over the contract’s term. As tight gas drilling expands over the next several years in Argentina with the benefit of government supported natural gas prices, this relationship should provide the Company with a unique opportunity to participate in further growth opportunities.

Eco-Stim Energy Solutions, Inc. (NASDAQ:ESES) is all set to announce its earnings on May 04/a. As per Zack’s analyst ratings, Eco-Stim Energy Solutions, Inc. (NASDAQ:ESES) currently has an average brokerage rating of 1. On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NASDAQ:ESES) is $1.925 with a high of $2 and a low of $1.85.

Let’s take a look at the technical analysis.

The Barchart Technical Opinion rating is a 64% Buy with a Strongest short term outlook on maintaining the current direction. Longer term, the trend strength is Strong. Long term indicators mostly agree with the trend.

The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oil prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). The long term and short term EMA’s of 1.18 and 1.15 are lower than the current trading price suggesting a bullish pattern in both short term as well as long term.

The relative strength index (RSI) is a momentum oscillator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 69.25 suggesting a bullish price action.

As such, while we believe Eco-Stim Energy Solutions, Inc. (NASDAQ:ESES) represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.

Eco-Stim Energy Solutions, Inc. is an oilfield service and technology company. The company provides management technologies, well stimulation and completion services to oil and gas producers. Eco-Stim Energy Solutions, Inc. is based in Houston, Texas.

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