Making New Moves
Today, I want to look at three companies involved in different parts of the oil and gas sector. Two are breaking above six month lines of resistance, and one is rolling over and headed lower after making new highs this year.
Stone Energy (SGY), is an independent oil and gas producer. A cup-and-handle consolidation pattern has formed on the daily chart, with rim line resistance in the $29.50 area, just above the flat 200-day moving average. MacD and the relative strength indicator are above their centerlines and tracking higher. The average directional index, a measure of trend strength, is above the 20 level, which often signals the start of a trend, either higher or lower. Last August, the ADX line moved above 20, as the stock price broke below the 200-day moving average and declined to its October low. The index moved above the 20 level two weeks ago, prior to last week's break above rim line resistance. Recent price action is being supported by an increase in volume and money flow. Chaikin Money Flow is in positive territory and the Chaikin oscillator is above its 21 period signal average....349 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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