BLU.AX down 14.29% on ASX 05 Jan 2026: market closed, key levels to watch
BLU.AX stock closed down 14.29% at A$0.006 on the ASX on 05 Jan 2026, a steep one-day drop that left the issuer among the market’s top losers as trading ended. Volume was 2,761,311 shares against a 50-day average of 4,200,557, showing below-average turnover. Blue Energy Limited (BLU.AX) now trades near its 200-day average of A$0.006635, with a year high of A$0.010 and a year low of A$0.004. In this note we analyse the move, financials, technical levels and what Meyka AI’s model projects next
Price action and immediate levels
BLU.AX opened at A$0.007 and closed at A$0.006 on 05 Jan 2026, down A$0.001 or 14.29% for the day. Trading volume was 2,761,311 shares, below the 50-day average of 4,200,557, suggesting weaker participation on the sell-off. Short-term support sits near the recent low at A$0.004 and immediate resistance is at A$0.007 to A$0.010; traders should watch A$0.005 as the next technical support
Catalysts and news flow
There was no company announcement tied directly to today’s drop; recent public coverage on financial portals listed BLU.AX among small-cap energy names source. Sector chatter around smaller Australian oil and gas explorers has been mixed amid wider energy volatility, and Blue Energy’s next formal event is the earnings announcement scheduled for 11 March 2026 (market time).
Fundamentals and valuation
Blue Energy Limited (Blue Energy) reports EPS of -0.01 and a reported PE of -0.70 reflecting negative earnings and a small market cap of A$21,083,815. Key balance-sheet ratios: price-to-book is 0.18, book value per share is A$0.0391, current ratio is 1.32 and debt-to-equity is 0.00 (rounded). These metrics point to low market valuation but ongoing operating losses.
Technical snapshot
Momentum indicators are mixed: RSI is 58.12, ADX is 23.59 and Stochastic %K reads 100.00 suggesting short-term strength exhaustion. Bollinger bands show an upper band at A$0.010 and lower band at A$0.000, and MFI at 90.66 flags overbought readings earlier in the run-up. Watch the A$0.005–A$0.006 range for consolidation.
Meyka grade and model forecast
Meyka AI rates BLU.AX with a score of 63.80 out of 100 (Grade B, HOLD). This grade factors in S&P 500 benchmark comparison, sector performance, financial growth, key metrics, and analyst consensus. Meyka AI’s forecast model projects a short-term monthly level of A$0.010 and a 12‑month projection of A$0.00437. Relative to the current price of A$0.006, the monthly projection implies an upside of +66.67% and the 12‑month projection implies a downside of -27.17%. Forecasts are model-based projections and not guarantees.
Risks and sector context
Blue Energy operates in the ASX Energy sector, which is down 7.90% over 12 months on the compiled sector data, underscoring cyclical risk for explorers. Key risks include low liquidity, negative EPS, reserve development timing and commodity price swings; the stock’s average daily turnover and small market capitalisation raise execution risk for larger investors.
Final Thoughts
BLU.AX ended the ASX session on 05 Jan 2026 at A$0.006 after a one-day fall of 14.29%, driven by thin trading and sector pressure rather than a single news release. The company shows negative earnings (EPS -0.01) and a low price-to-book ratio of 0.18, suggesting the market values the stock largely for its reserves and optionality. Meyka AI’s model projects a short-term monthly level at A$0.010 (implied upside +66.67%) and a 12-month projection at A$0.00437 (implied downside -27.17%). Short-term traders may find opportunity on bounces toward A$0.007–A$0.010, while longer-term investors must weigh development timelines, funding risk and commodity cycles. Liquidity constraints and operating losses increase execution and valuation risk. We note that Meyka AI is an AI-powered market analysis platform; grades and projections are model outputs and not investment advice. Monitor volume, the scheduled earnings release on 11 March 2026 and broader energy sector moves before adjusting exposure
FAQs
The decline was driven by thin trading and sector weakness rather than a specific company announcement. Volume of 2,761,311 shares was below the 50-day average, amplifying price moves in this small-cap stock.
Immediate resistance is A$0.007 to A$0.010 and short-term support sits at A$0.005, with a lower anchor near the year low at A$0.004. Traders should watch volume at these levels.
Meyka AI rates BLU.AX 63.80/100 (Grade B, HOLD). The grade weighs benchmark and sector comparisons, financial growth, key metrics and forecasts. It is informational only and not financial advice.
Meyka AI’s model projects A$0.010 monthly (implied +66.67% from A$0.006) and A$0.00437 at 12 months (implied -27.17%). These are model projections and not guarantees; watch earnings and 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.