Friday, September 4, 2015

Anadarko Petroleum Corporation (NYSE: APC)

Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of oil and gas properties. It operates through three segments: Oil and Gas Exploration and Production; Midstream; and Marketing. The Oil and Gas Exploration and Production segment explores for and produces natural gas, oil, condensate, and natural gas liquids (NGLs). The Midstream segment provides gathering, processing, treating, and transportation services to Anadarko and third-party oil, natural-gas, and NGLs producers, as well as owns and operates gathering, processing, treating, and transportation systems in the United States. The Marketing segment markets oil, natural gas, and NGLs in the United States; oil and NGLs internationally; and anticipated liquefied natural gas production from Mozambique.

Take a look at the 1-year chart of Anadarko (NYSE: APC) below with my added notations:
1-year chart of Anadarko (NYSE: APC)
After APC’s decline into December, the stock started a rally from its $70 December low. Ultimately, the rally ended at the same $95 level that stalled the stock back in October and November. In July, APC bounced on the same $70 level (red) that provided support for the stock back in December. The break of the $70 support led to a drop, as one would expect, and after a brief fake-out last week, APC now sits just below the $70 resistance again.

The Tale of the Tape: APC has a key level of resistance at $70. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $70.

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