DCP Midstream Partners, LP owns, operates, acquires, and develops a
portfolio of midstream energy assets in the United States. It operates
through three segments: Natural Gas Services, natural gas liquids (NGL)
Logistics, and Wholesale Propane Logistics. The company’s Natural Gas
Services segment gathers, compresses, treats, processes, transports,
stores, and sells natural gas. The NGL Logistics segment engages in
producing, fractionating, transporting, storing, and selling NGLs, and
recovering and selling condensate. The Wholesale Propane Logistics
segment is involved in transporting, storing, and selling propane in
wholesale markets. It serves retail and wholesale propane customers,
refining and petrochemical companies, and NGL marketers operating in the
liquid hydrocarbons industry. DCP Midstream GP, LP serves as the
general partner of the company.
Take a look at the 1-year chart of DCP (NYSE: DPM) below with my added notations:
DPM has formed a clear support at $35 (green). In addition, the stock
is declining against a short-term, down trending resistance level (red)
over the last couple of months. These two levels combined have DPM
stuck within a common chart pattern known as a descending triangle.
Eventually, the stock will have to break one of those levels.
The Tale of the Tape: DPM has a down trending
resistance and a $35 support level to watch. A long trade could be made
on a breakout through the resistance or on a pullback to $35. A break
below the $35 support would be an opportunity to enter a short trade.
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