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Zenith Energy volume purchases. Read Moosh’s blog

Wednesday 5 January 2022 09:58 – by Moosh

My first volume purchase I tried was from Zenith Energy (LSE: ZEN). In early July 2021 I noticed a spike in news volume so I figured I would follow the volume. As this was the initial volume buy test, I reduced the buy and from mid-March calculated 10,527 shares which were bought on July 22, 2021 for £ 106.94 . these were sold on July 29, 2021 for a profit of 14%.
Well that seems a little too easy to me for such a small value and I was wondering if it was the beginner’s luck!

Above: ZEN three-month chart

I tested ZEN again in the next price cycle, starting the cumulative calculation of volume purchases from the July 2021 price peak, but this time I increased purchases by 50% from the standard purchase size. Here are the purchases:

August 18, 2021

– 12,384 shares, £ 140 (breakeven point 1.195p)

August 21, 2021

– 12,968 shares, £ 140 (total 25,352 shares, £ 280, breakeven 1.136p)

September 15, 2021

– 10,941 shares, £ 120 (total 36,293 shares, £ 400, breakeven 1.1242p)

These were sold on October 25, 2021 for a profit of 8.5%. The purchases met the rule that they should reduce the total holding on average.
ZEN is a low volume business with a steady flow of news. I did not see low volume as a barrier not to invest since buying in volume allows me to gain exposure and capitalize on the opportunity but in a size commensurate with recent market activity in ZEN.

Find previous articles from Moosh’s blog here

As the ZEN price increased in October, it was useful to watch the trend as the volume exceeded the 20-day average volume in the following days after my last purchase:

September 16, 17, 21, 24

October 6, 12, 18, 22, 25

Reference

Turn up the sound – Blog entry from December 20, 2021

Identifying trends – Blog entry from December 22, 2021

The views of the writer are his own and not a representation of those of South East London. No advice is deducted or given. If you need financial advice, please consult an independent financial advisor.