MEL.AX Metgasco down 11.11% to A$0.024 at ASX close 06 Jan 2026: watch liquidity
MEL.AX stock closed lower on 06 Jan 2026 after a sharp intraday drop that left the share price at A$0.024, down 11.11% on the day. Trading volume of 80,159 shares exceeded the 3‑month average, highlighting higher selling intensity. Investors cited weak liquidity, stretched valuation metrics and Energy sector pressure as drivers. This note breaks down the price move, key ratios such as EPS -0.11 and PE -0.22, technical signals, and model forecasts to frame risk and short term opportunities on the ASX in AUD.
Market snapshot: MEL.AX stock performance at ASX close
Metgasco Limited (MEL.AX) finished the session at A$0.024, down A$0.003 or 11.11% from yesterday’s A$0.027. The day low and high were A$0.024 and A$0.025. Market capitalisation stands at A$881,815 with 36,742,276 shares outstanding. Average 50‑day price is A$0.05492 and 200‑day average is A$0.10563, signalling a steep decline versus longer term averages. Volume of 80,159 compared with average volume 68,991 shows above trend selling on the ASX.
Drivers of the fall: MEL.AX stock news and sector context
No single company announcement accompanied today’s drop, but public sources show broader market selling in small energy names. The Energy sector is under pressure YTD and the oil and gas exploration group shows weaker relative momentum. Low liquidity and wide bid‑ask spreads amplified selling. Investors are watching the next earnings announcement scheduled for 12 Mar 2026, which could be a catalyst for price moves. For trading data and quotes see the official market page on Yahoo Finance and Metgasco’s site for corporate updates source source.
Fundamentals and valuation: MEL.AX stock ratios reviewed
Metgasco reports EPS -0.11 and a negative PE -0.22 on trailing figures. Price to sales ratio is 0.41 and price to book sits at -0.34, reflecting negative equity per share. Current ratio is 0.27, indicating working capital strain. Enterprise value of A$4,067,617 relative to market cap suggests leverage and minority liabilities matter. These metrics help explain why the stock trades well below its 50 and 200 day averages and why investors price in elevated downside risk.
Technicals and liquidity signals for MEL.AX stock
Short term momentum shows mixed readings. RSI is 57.86 and ADX is 49.70, signalling a strong trend. Money flow indicators are weak with MFI 12.21, suggesting oversold flows. Bollinger bands range from A$0.01 to A$0.04, with the price near the lower band. OBV is negative, and the stock trades below both the 50‑day and 200‑day averages. Thin market depth can magnify moves, so order size matters for traders on the ASX.
Meyka AI rating and MEL.AX stock technical analysis
Meyka AI rates MEL.AX with a score out of 100: 73.24 (Grade B+), suggestion BUY. This grade factors in S&P 500 benchmark comparison, sector performance, financial growth, key metrics, and analyst consensus. The model flags long term growth potential but highlights near term balance sheet stress. Technical indicators and low liquidity raise execution risk. Investors should treat the Meyka grade as informational only; we are not financial advisors.
Outlook and price targets for MEL.AX stock
Meyka AI’s forecast model projects a monthly price around A$0.02, a one year projection of A$0.00548, and a three year projection of A$0.00667. Compared with the current A$0.024, the monthly forecast implies -16.67%, the one year projection implies -77.26%, and the three year projection implies -72.30%. For scenario planning we present a short term base target of A$0.02, a conservative bear target A$0.005, and a bull recovery scenario A$0.05. Forecasts are model based projections and not guarantees.
Final Thoughts
MEL.AX stock closed the ASX session at A$0.024 on 06 Jan 2026, sliding 11.11% as selling pressure met thin liquidity. Fundamentals show negative EPS -0.11, a distressed current ratio 0.27, and a negative book value per share, which explains market caution. Technicals point to oversold flows but a persistent downtrend relative to the 50 and 200 day averages. Meyka AI’s forecast model projects one year at A$0.00548, implying a -77.26% decline from today’s price, while a monthly model sits at A$0.02, implying -16.67%. These projections show wide scenario dispersion. Key catalysts to watch are the earnings announcement on 12 Mar 2026, sector commodity moves, and any balance sheet actions from the company. Traders should size positions carefully given low liquidity, and long term investors should weigh recovery scenarios against persistent balance sheet weakness. Meyka AI provides this AI‑powered market analysis as information only; forecasts are model based and not guarantees.
FAQs
MEL.AX stock fell on 06 Jan 2026 due to low liquidity, weak fundamentals like EPS -0.11, and sector pressure in energy. Above‑average volume amplified selling on the ASX.
Key risks include a weak current ratio **0.27**, negative equity per share, thin trading depth, and commodity price exposure in the Energy sector. These raise downside risk for MEL.AX stock.
Meyka AI projects monthly **A$0.02**, one year **A$0.00548**, and three years **A$0.00667**. These imply material downside from the current **A$0.024** and are model based, not guarantees.
The next formal catalyst is the earnings announcement on **12 Mar 2026**. That report, or any corporate update, could move MEL.AX stock significantly given low liquidity.
Disclaimer:
Stock markets involve risks. This content is for informational purposes only. Past performance does not guarantee future results. Meyka AI PTY LTD provides market analysis and data insights, not financial advice. Always conduct your own research and consider consulting a licensed financial advisor.
