Bonanza Creek Energy Inc (NYSE: BCEI)

Bonanza Creek Energy, Inc., together with its subsidiaries, operates as an independent energy company in the United States. The company is primarily engaged in the acquisition, exploration, development, and production of onshore oil and natural gas assets in the Wattenberg Field in Colorado and the Dorcheat Macedonia Field in Southern Arkansas. It also owns and operates oil-producing assets in the North Park Basin in Colorado; and the McKamie Patton Field in Southern Arkansas.
Take a look at the 1-year chart of Bonanza (NYSE: BCEI) below with my added notations:

For the most part, BCEI has been trending lower for the last 7 months. However, during the most recent 4 months the stock has had a tendency to create key price levels at the increments of $5 (blue). For example, the current level of resistance is $30. Next, you can see that $35 was the previous support back in October and November, while recently the $20 and $25 levels have both been hit as either support or resistance.

The Tale of the Tape: BCEI is approaching its key level of $30. A long trade could be made on a break above that level with a stop placed under it. A short trade could be made at $30 with the expectation of a fall down to the next $5 level at $25.
Please share this article