Penn West Petroleum Ltd (NYSE: PWE)

Penn West Petroleum Ltd., an exploration and production company, engages in acquiring, exploring, developing, exploiting, and holding interests in petroleum and natural gas properties and related assets in western Canada. The company's principal proved plus probable reserves are located in Alberta, British Columbia, Saskatchewan, Manitoba, and the Northwest Territories, Canada. It also has proved plus probable reserves interests in Wyoming in the United States. The company was formerly known as Penn West Energy Trust and changed its name to Penn West Petroleum Ltd. in January 2011. Penn West Petroleum Ltd. was founded in 1979 and is headquartered in Calgary, Canada.
Please take a look at the 1-year chart of PWE (Penn West Petroleum, Ltd.) below with my added notations:
PWE peaked last September at $17 and lost half of its value from there. The stock seems to be forming a base over the last (9) months all the while hitting a very important level of resistance at just under $12 (red). No matter what the market has or has not done since November, PWE has not been able to break through that area of resistance. If the stock can finally move above $12, higher prices for the stock should follow.
The Tale of the Tape: PWE has a key level of resistance around $12. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $11.75 - $12.
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