Bill Barrett Corporation, an independent oil and gas company, engages in the exploration, development, and production of crude oil and natural gas in the United States. It principally holds interests in various properties located in the Piceance, Uinta, and Denver-Julesburg basins in the Rocky Mountain region of the United States. The company was founded in 2002 and is headquartered in Denver, Colorado.
To review Barrett's stock, please take a look at the 1-year chart of
BBG (Bill Barrett Corporation) below with my added notations:
BBG had been trading in a sideways range for the last 4-5 months.
During that period of time the stock had also been bouncing within a
common chart pattern known as a rectangle. Rectangle patterns form when a
stock bounces between a horizontal support and resistance. A minimum of
(2) successful tests of the support and (2) successful tests of the
resistance will give you the pattern. BBG's rectangle pattern had formed
a $24 resistance (red) and a $20 support (blue). Now that the stock
has broken its rectangle resistance higher prices should follow.
* One caveat: Traders would have liked to have seen an increase in
volume on the break above $24. Volume would add validity, but that
doesn't mean the stock isn't still going higher.
The Tale of the Tape: BBG has broken through the resistance of its
rectangle pattern. The possible long position on the stock would be on a
pullback to $24. The ideal short opportunity would be on a break back
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