Apache Corporation, an independent energy company, explores for,
develops, and produces natural gas, crude oil, and natural gas liquids.
It holds interests in asset base of 12.3 million gross acres located in
Central United States, the Permian Basin, and the Gulf Coast onshore and
offshore areas of the United States; in an area of 7 million gross
acres in the provinces of British Columbia, Alberta, and Saskatchewan;
and in an area of 9.7 million gross acres located in Western Desert,
Egypt. The company also has interests in 30 exploration permits, 17
production licenses, and 13 retention leases that cover a total area of
7.9 million gross acres located in offshore Western Australia; 32
concessions, exploration permits, and other interests covering an area
of 4.4 million gross acres located in 4 hydrocarbon basins in Argentina;
and has interests in various properties located in the United Kingdom
North Sea.
To review Apache's stock, please take a look at the 1-year chart of APA (Apache Corporation) below with my added notations:
APA had formed a key level of support at $80 (red) over the last (3)
months. In addition, the stock formed a trendline of resistance (blue)
starting in the middle of June. These two levels combined had APA stuck
within a common chart pattern known as a descending triangle. At some
point, the stock had to break through one of those two levels, and as
you can see, it was the $80 support that finally broke.
APA has already fallen to $75 and has snapped back over the last
week. The stock should be moving overall lower from here and the bearish
volume (purple) supports that forecast.
The Tale of the Tape: APA broke the support of its
descending triangle. A short trade could be made on any rallies back up
near $80. A break back above the $80 level would setup another possible
short trade at the trendline of resistance.
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