Friday, July 19, 2013

ONEOK, Inc. (NYSE: OKE)

ONEOK, Inc. operates as a diversified energy company in the United States. The company operates in three segments: ONEOK Partners, Natural Gas Distribution, and Energy Services. The ONEOK Partners segment engages in gathering, processing, storing, and transporting natural gas; owns and operates interstate and intrastate regulated natural gas transmission pipelines and natural gas storage facilities; and gathers, treats, fractionates, stores, and transports natural gas liquids (NGL) to third-party fractionators and pipelines. This segment is also involved in the storage and distribution of NGL products to petrochemical manufacturers, heating-fuel users, refineries, and propane distributors through regulated distribution pipelines. The Natural Gas Distribution segment provides natural gas distribution services to approximately 2 million customers, including residential, commercial, industrial, and transportation customers, as well as wholesale and public authority customers in Oklahoma, Kansas, and Texas. The Energy Services segment offers natural gas supply and risk-management services for natural gas and electric utilities, and commercial and industrial customers through its network of leased storage and transportation capacity.
To review ONEOK's stock, please take a look at the 1-year chart of OKE (ONEOK, Inc.) below with my added notations:
1-year chart of OKE (ONEOK, Inc.) Notice the falling wedge that I have outlined on the chart of OKE. A falling wedge price pattern is essentially a type of triangle formation in which the stock (OKE) has formed a downtrending resistance line (red) and a downtrending support level (blue). These two trend lines converging on one another combine to form a falling wedge, which is considered a bullish pattern.
Confirmation of this pattern occurred when the stock broke through the downtrending resistance. In addition, the stock also broke back above its key level of $42 (brown).
The Tale of the Tape: OKE has confirmed its falling wedge pattern, which should lead to higher prices for the stock. A long trade could be entered on a pullback to the key level of $42 with a stop placed below that level.
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