EOG Resources (EOG)One of the best-looking names among big-cap energy stocks is EOG Resources (EOG). Its bottoming process is the most developed of the bunch making it one of the first oil stocks to reclaim the higher ground.
With yesterday’s oil pop, EOG stock was able to vault back above the pivotal 50-day moving average — a level it hasn’t seen since April. The sideways base formed prior to this week’s breakout illustrates the bears’ impotence. Despite multiple attempts to take EOG stock lower in recent weeks, each and every selling raid was rebuffed rapidly by buyers.
While the bottoming attempt in EOG may yet experience a few setbacks, now is as good a time as any to dip your toes in the water.
Buy the Jan $80 calls for $6.30. (more)