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Allied Energy Corp (OTCMKTS: AGYP) is up 9.76% on sustained volatility

Allied Energy Corp. (OTCMKTS: AGYP) was up 9.76% on Wednesday, recovering from a pullback on Tuesday. Much like the entire oil and gas market, the stock has seen above-average volatility recently.

Oil and gas stocks took a roller coaster ride as investors continued to receive bullish and bearish reports on the future of the commodity at the same time. The US Energy Information Administration (EIA) reported that American crude oil inventories fell for the third straight week last week and aggregate demand for fuel rose to its highest level since March 2020, upping prices by about 10% through Wednesday; generally a bullish signal.

On the other hand, recent COVID-19 outbreaks fueled by the Delta variant of the coronavirus are raising concerns about the strength of the global economic recovery.

The good news for oil and gas traders is that volatility creates opportunity, and AGYP investors learned this firsthand on Wednesday. There is reason to believe the potential for the company remains as it is generally on an upward trend, according to recent press and corporate tweets.

Completing production on its Annie Gilmer and Green Leases in historically oil-rich North Texas, the company filed encouraging reports on OTCMarkets. Mark McBryde, the petroleum engineer who conducted the study, found proven oil worth $ 2,944,900 and probable and possible oil worth $ 18,536,600 at the Green Lease companies and $ 6,704,900 detected and $ 5,489,900 probable and possible reserves on the Annie Gilmer Lease. Those reports put the oil price at $ 46.26. The current price of oil is $ 67.92, which means that at today’s prices these potential reserves would be worth 46% more than their declared value.

Barchart views the company’s 20-200, 50-100, 50-150 and 50-200 Day MACD oscillators as bullish, the same side putting the next resistance points at $ 0.336, $ 0.362 and $ 0.395. Support is at $ 0.277.

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