Questerre Energy Corp (QEC:TO)

Questerre is a junior oil and gas company. They are based in Canada and do exploration and development projects. This is a very attractive play as Oil prices are making a comeback to strong prices.

I like this junior play because it will likely benefit strongly from the market rally. Juniors always tend to move higher percentage wise than the market in both directions. That is, they are more volatile. This is good when you are running up with the stock, and bad of course when it starts to go down. See this chart for a better picture of what we are dealing with here.



The stock seems to be in a steady upward channel which is about 40 cents difference from the top and bottom of the channel. Since the stock is trading at such low prices, this indicates extremely high volatility. You can capitalize on this by buying when the stock is near the bottom of the channel (lower red line) and selling near the top of the channel (higher red line). Note that the volume has been very high on recent moves higher (see orange ovals).

Overall, the stock looks very healthy. My guess is you will see a pullback to the 1.60-1.75 mark in the near future. That would be a tremendous buying opportunity for this play. Ride it up until around 2.00-2.15 and take your 25%+ profit.

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Cheers!