Kosmos Energy Ltd. (DE) (KOS)

KOS stock forecast: buy or sell

KOS stock outlook

  • Kosmos Energy Ltd. (DE) stock dropped -7.74% to close at $1.55 on the stock market today.
  • The stock is configuring an uptrend pattern since mid-March, when it bottomed at $0.50. This uptrend marked a 210% gain
  • Kosmos Energy Ltd., a deepwater independent oil and gas exploration and production company, focuses along the Atlantic Margins.
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Please read:
The comments contained in this post are personal and not recommendations for you to buy or sell stocks. The author of this document does not have any knowledge of the particular conditions of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are posted for learning reasons only

KOS stock chart overview

Should I buy Kosmos Energy Ltd. (DE) stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is KOS stock a buy?

In the current situation of Kosmos Energy Ltd. (DE) there is not any eligible buy setup. This doesn't mean we expect a selloff for KOS in coming sessions, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell Kosmos Energy Ltd. (DE) stock?

When you own a stock with some profit, it's really difficult to decide the good moment to sell and get your benefits. Similarly to when we have to buy shares, determining when is appropiate to sell is not a capricious decision, and we must adhere our own trading style. Our trading system selects very simple strategies to guide us on when is a good time to sell a stock. Be aware that these strategies are not intended for selling short Kosmos Energy Ltd. (DE) stock

As a golden rule, you should never hold a trading operation that generates higher than expected losses by the time of purchase. The timing to sell your stock should always be determined by the stop-loss (automatic or manual)

Is it time to sell Kosmos Energy Ltd. (DE) stock?

In the current situation of Kosmos Energy Ltd. (DE) there is not any eligible sell setup, so Kosmos Energy Ltd. (DE) stock holders with operations in profit can keep their positions

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Analysts' recommendations to buy or sell Kosmos Energy Ltd. (DE) stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

We don't have any rating published in the last month for Kosmos Energy Ltd. (DE)

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Technical analysis

Kosmos Energy Ltd. (DE) shares started an uptrend in mid-March, and grew a gorgeous 210%. The price line shows higher highs and lows, and along the way gave very few buy points for those who wanted to invest. Latest pullback was in mid-May, when price bounced at $1.21. Like in all uptrends, price needs to take breath and currently price is consolidating the gains in a range between $3.45 and $1.21

SMAs overview

Moving averages are indicators for traders to detect market momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days. Further about Moving Averages from sources like Wikipedia and Investopedia

Supports and resistances

Investors use supports and resistances to identify price points on a chart that may act as barriers, preventing the price of an asset to move up or down. Supports are levels where the price tends to find support as it falls. This means that the price is more likely to "rebound" this level rather than break through it. However, if the price breaks down the support, it will probably continue falling until meeting another support level. In contrast, a resistance level is where the price may find opposition as it moves up. In the same manner, the price is more liable to "bounce off" at this level, and if it finally breaches this level, the price will climb more easily until it finds the next resistance

The current resistance levels are:

  • R1: $10.90 (603.23% above)
  • Price is at all-time lows and there are not lower support levels.

    Bollinger bands

    So-called Bollinger bands are a popular practice developed by John Bollinger. It comprises three lines that are drawn superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that gauges price fluctuations to spot when the price of a share or financial asset is overbought or oversold. Like other oscillation indicators, the RSI moves in a range between 0 and 100. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in the late 1970s

    The RSI dropped below the overbought level of 70 in early June after just crossing to the overbough zone for a single day (weak signal). The RSI value today was 42.44. Since that level was lost, Kosmos Energy Ltd. (DE) stock sank a 49.18%

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    Earnings and financials

    Kosmos Energy Ltd. (DE) (KOS) posted EPS for the fiscal Q1 that slightly worsened analysts' expectations. Quarterly EPS was $-0.16 per share from an estimated $-0.15. This quarterly report represents an earnings surprise of -6.67%. Company's turnover was $177.8 million compared to $201.1 million estimated by analysts.

    Compared to the same quarter last year, EPS was $-0.06, so posted EPS is a loss of -166.67%. Sales sank a -40.1% on an annualized basis in the first-quarter, from $296.8M to $177.8M last quarter.

    KOS is releasing Q2 financial report on mid next August. Forecasted per-share earnings of %s for this quarter is $-0.27. If you hold or you are thinking of buying KOS shares, you must be on alert as the earnings reporting day usually has a higher than usual volatility, and price can soar and sink with unsually low liquidity and not honouring your buy or stop-loss orders. You can uncover more details about the earnings conference call and the financial reports on the Investor Relations section of its website: http://www.kosmosenergy.com.

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