Pengrowth Energy Corp (NYSE: PGH)

Pengrowth Energy Corporation engages in the acquisition, development, exploration, and production of oil and natural gas assets in the Alberta, British Columbia, Saskatchewan, and Nova Scotia provinces in Canada. It primarily explores for crude oil, bitumen, natural gas, and natural gas liquids. The company’s assets include Cardium light oil, Lindbergh thermal, and Swan Hills light oil projects. As of December 31, 2014, it had total proved plus probable reserves of 557.4 millions of barrels of oil equivalent. Pengrowth Energy Corporation was founded in 1988 and is headquartered in Calgary, Canada.
Take a look at the 1-year chart of Pengrowth (NYSE: PGH) below with added notations:

After a strong decline from July until December, PGH has been trading sideways over the last 4-5 months. During the sideways move the stock has formed a common pattern known as a rectangle. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern.
PGH’s rectangle pattern has formed a resistance at $3.50 (red), which was also a prior support, and a $2.50 support (green). At some point the stock will have to break one of the two levels.

The Tale of the Tape: PGH is trading within a rectangle pattern. The possible long positions on the stock would be either on a pullback to $2.50 or on a breakout above $3.50. The ideal short opportunity would be on a break below $2.50.
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