Oasis Petroleum Inc., an independent exploration and production
company, focuses on the acquisition and development of unconventional
oil and natural gas resources in the North Dakota and Montana regions of
the Williston Basin. The company’s principal projects are located in
West Williston and East Nesson. As of December 31, 2014, it had 505,503
net leasehold acres in the Williston Basin; and approximately 272.1
million barrels of oil equivalent of estimated net proved reserves. The
company sells its oil and natural gas to refiners, marketers, and other
purchasers that have access to pipeline and rail facilities.
Take a look at the 1-year chart of Oasis (NYSE: OAS) with the added notations:
Although the stock has ridden some big ups and downs along the way,
OAS has been bouncing on top of a clear $8 support (green) over the past
5 months. Now that the stock appears to be testing that support level
again, traders should be able to expect some sort of bounce. However,
the stock’s recent underperformance is a bit concerning. If the $8
support were to break, lower prices should follow.
The Tale of the Tape: OAS has a key level of support at $8. A
trader could enter a long position at $8 with a stop placed under the
level. If the stock were to break below the support a short position
could be entered instead.
