Replies to post #586 on Petro Matad (PRTDF)

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Petro Matad Ltd (PRTDF) Chaiken Money Flow Indicates Solid Buying Pressure

Petro Matad Ltd (PRTDF) shares have moved above the Chalkin Money Flow zero line, indicating potential buying momentum for the shares.

The Chaikin Money Flow Indicator is an oscillator developed by Marc Chaikin. An oscillator is an indicator that is used as a counter trend showing when the market is overbought or oversold. These indicators are momentum based. The CMF is based largely on the Accumulation Distribution Line; it compares the close value with the high and the low for that same day. Generally, CMF indicator could be used as an indicator of buying and selling pressure. When CMF is above zero it is indicator of buying pressure and when it is below zero it is indicator of selling pressure.

Investors and traders may also want to monitor additional technical levels of shares of Petro Matad Ltd (PRTDF). A frequently used tool among technical stock analysts is the moving average. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a certain period of time. Moving averages can be very helpful for identifying peaks and troughs. They may also be used to assist the trader figure out proper support and resistance levels for the stock. Currently, the 200-day MA is sitting at 0.19, and the 50-day is 0.11.

The 14-day ADX for Petro Matad Ltd (PRTDF) is currently at 23.48. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would signify a very strong trend, and a value of 75-100 would point to an extremely strong trend. Checking in on some other technical levels, the 14-day RSI is currently at 69.20, the 7-day stands at 71.28, and the 3-day is sitting at 61.05. The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of stock price movements. The RSI was developed by J. Welles Wilder, and it oscillates between 0 and 100. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70. RSI can be used to detect general trends as well as finding divergences and failure swings.

At the time of writing, Petro Matad Ltd (PRTDF) has a 14-day Commodity Channel Index (CCI) of 105.16. Developed by Donald Lambert, the CCI is a versatile tool that may be used to help spot an emerging trend or provide warning of extreme conditions. CCI generally measures the current price relative to the average price level over a specific time period. CCI is relatively high when prices are much higher than average, and relatively low when prices are much lower than the average. Investors may be watching other technical indicators such as the Williams Percent Range or Williams %R. The Williams %R is a momentum indicator that helps measure oversold and overbought levels. This indicator compares the closing price of a stock in relation to the highs and lows over a certain time period. A common look back period is 14 days. Petro Matad Ltd (PRTDF)’s Williams %R presently stands at -18.32. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would indicate an overbought situation. A reading from -80 to -100 would indicate an oversold situation.

One of the most famous sayings in the stock market is “buy low, sell high”. This may seem like an oversimplified statement, but there are many novice investors who often do the complete opposite. Many investors may be looking too closely at stocks that have been on the rise, and they might not be checking on the underlying fundamental data. They may be hoping to ride the wave higher, but may end up shaking their heads. On the flip side, many investors may hold onto stocks for far too long after they have slipped drastically. Waiting for a bounce that may never come can cause frustration and plenty of second guessing. Successful investors are typically able to locate stocks that are undervalued at a certain price. This may take a lot of practice and dedication, but it may do wonders for the health of the portfolio.

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US$16 million Fundraising

Petro Matad Limited (AIM: MATD), the AIM-quoted Mongolian oil explorer, is pleased to announce the successful completion of a US$16 million placing with new institutional investors and subscription for new Ordinary Shares in the Company by existing shareholders and directors of the Company (the "Fundraising").

Highlights

-- A total of 127,420,294 New Ordinary Shares (the "Placing Shares") in the Company were placed with institutional investors (the "Placing") and a total of 59,167,335 New Ordinary Shares (the "Subscription Shares") in the Company were subscribed for by new and existing investors, raising net proceeds of US$16 million (GBP11.5 million) at a price of 6.5 pence per New Ordinary Share, a 11.5 per cent. discount to the average daily volume weighted average price for the three months to 18 January 2018.

-- The New Ordinary Shares will represent, in aggregate, approximately 35.9 per cent. of the Company's issued ordinary share capital immediately following Admission.

-- The Fundraising will allow the Company to re-launch its exploration and appraisal activities in Mongolia, led by industry veteran Mike Buck as CEO, following his appointment in October 2017

-- The net proceeds of the Fundraising will be used to fund up to four wells as part of a drilling campaign across the Company's significant, 100% owned, acreage position in Mongolia

-- The drilling programme will consist of up to two wells in Blocks IV and V in Western Mongolia and two wells in Block XX, immediately adjacent to the producing Block XIX

-- The 2018 drilling campaign is planned to target a combined estimated prospective resource of 398mmbo with an expected combined drilling cost of US$15.5 million

-- The Company has contracted a Sinopec drilling rig to undertake the drilling of the two wells in Blocks IV and V, with the spudding of the first prospect anticipated for early May 2018

Stockdale Securities Limited ("Stockdale") is acting as Nominated Adviser and Joint Bookrunner to the Company in connection with the Fundraising. Stifel Nicolaus Europe Limited ("Stifel") and Pareto Securities AS ("Pareto") are acting as Joint Bookrunner to the Company in connection with the Fundraising (together with Stockdale, the "Joint Bookrunners").

Mike Buck, CEO of Petro Matad, commented:

"I am pleased to announce the completion of this significant, oversubscribed fundraise; through the support of new and existing shareholders we are targeting a substantial and unprecedented exploration campaign for an independent E&P company in Mongolia.

"We are uniquely placed in Mongolia; with an extensive acreage position and large resource range and with the access to a suitable rig, the 2018 drilling campaign will allow us to unlock the prospectivity in a timely and economic fashion, providing near term catalysts and longer term value.

"This is a very exciting time for Petro Matad and in my experience, opportunities of this magnitude are rare and with the support of the market we are focussed on delineating the significant potential contained within our portfolio."