What does Coretrack Ltd do?
Coretrack Ltd [ASX:CKK] is an Australian oil and gas company focused on developing better proppants for use in hydraulic fracturing (fracking) of oil and gas wells. Proppants are a major cost item in the fracking process and represent a multi-billion dollar market annually.
Proppants are a sand like commodity pumped into oil and gas wells under pressure, to prop open the tiny fractures created in hydrocarbon bearing shale rocks during fracking to allow the oil and gas to flow.
Coretrack believes they have a superior and unique proppant manufactured from fly-ash, a by-product of coal fired power stations. The company believes that they have a unique proppant with the potential for widespread use because of its easy availability, ultra light weight and its ability to withstand very high pressures.
Anyway, that’s interesting, but what is the chart telling us?
What does the chart look like?
I find it helpful to bring up a chart. Here’s the daily chart of CKK.
The stock had a big rise today to a high of 2.5 cents. The company is receiving further funding to move to the commercialisation stage.
What now for CKK shares?
Well, as it had news today, we could perhaps expect a retracement from here.
You have to at least be aware of stocks like this.
Not suggesting for one moment it’s easy to trade. The market will push every button you have. Ultimately you will get the lessons you need to learn. You might find though, you keep getting the same lesson until you’ve learnt it.
You can get more knowledge on trading markets here.
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