Resolute Energy Corp. (NYSE:REN) Cut the Loss in the Third Quarter

[[tagnumber 0]]Resolute Energy Corp. (NYSE:REN) jumped towards the higher end of the trading range yesterday after the company released its third quarter report. Though the stock is still trading in a channel, yesterday‘s activity could lead to a price momentum and a short–term break of the resistance levels.[[tagnumber 1]] [[tagnumber 0]][[tagnumber 3]][[tagnumber 1]] [[tagnumber 0]]REN closed at $0.56 for a share the last trading session on a volume much lower than the average for the stock. That close is a 7.67% gain from the previous day and today the share price could move higher to the upper Bollinger band. Technical indicators looks bullish, just crossing critical levels.[[tagnumber 1]] [[tagnumber 0]]Yesterday, the company filed its financial report for the third quarter of this year. It shows that the net loss has been reduced, though that is not really a reliable good signal for investors. Sales keep declining due to the lower oil and gas prices and also due to decreased production and the cut in the loss is mainly due to a smaller amount of impairment charges on the company‘s properties.[[tagnumber 8]][[tagnumber 1]] [[tagnumber 0]]With the additional write downs, however, REN‘s assets have declined so much that now the company has negative shareholders‘ equity which cannot be a bullish signal for investors on the long term. There is over $700 million in long–term debt as well that is another factor that limits REN growth potential.[[tagnumber 1]] [[tagnumber 0]]Interestingly, financial institutions have recently purchased significant amount of REN shares, which could be an indication of some bullish mood about the oil&gas sector in general. According to the SEC filings from October, a hedge fund bought over 15 million shares, representing nearly 20% ownership in the company.[[tagnumber 1]] [[tagnumber 14]] [[tagnumber 1]]