Boardwalk Pipeline Partners, LP, through its subsidiaries, provides
transportation, storage, gathering, and processing services for natural
gas and natural gas liquids (NGLs). The company operates interstate
natural gas and NGLs pipeline systems, including integrated storage
facilities. Its pipeline systems contain approximately 14,195 miles of
interconnected natural gas pipelines, directly serving customers in 13
states and indirectly serving customers throughout the northeastern and
southeastern U.S. through various interconnections with unaffiliated
pipelines. The company also owns approximately 255 miles of NGLs
pipelines serving customers in Louisiana. In addition, it has
underground storage caverns having aggregate capacity of approximately
207.0 billion cubic feet of working natural gas and 17.6 million barrels
of NGLs.
Take a look at the 1-year chart of Boardwalk (NYSE: BWP) below with added notations:
After a steady 5-month rally BWP dropped into October and has been
trading sideways ever since. 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.
BWP’s rectangle pattern has formed an $18 resistance (red) and a $15
support (blue). At some point the stock will have to break one of the
two levels.
The Tale of the Tape: BWP is trading within a
rectangle pattern. The possible long positions on the stock would be
either on a pullback to $15 or on a breakout above $18. The ideal short
opportunities would be on either a break below $15 or on a rally back up
to $18.
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