Concho Resources Inc (NYSE: CXO)

Concho Resources Inc., an independent oil and natural gas company, acquires, develops, and explores for oil and natural gas properties in the Unites States. The company’s principal operating areas are located in the Permian Basin of southeast New Mexico and West Texas. As of December 31, 2014, its total estimated proved reserves were 637.2 million barrel of oil equivalent. Concho Resources Inc. was founded in 2006 and is headquartered in Midland, Texas.
Take a look at the 1-year chart of Concho (NYSE: CXO) below with my added notations:

Over the last 6 months CXO formed an inverse head and shoulders pattern (blue). I have noted the head (H) and the shoulders (s) to make the pattern more visible. The stock’s neckline resistance was at the $120 level (green). CXO confirmed its H&S by breaking through the neckline last week.
Keep in mind that simple is usually better. Had the inverse H&S pattern never been pointed out, one would still think CXO was moving higher simply because it broke through its $120 resistance level.

The Tale of the Tape: CXO confirmed an inverse head & shoulders pattern. A long trade could be entered on a pullback down to the $120 level. A break back below $120 could negate the forecast for a move higher.
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