• 6 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 3 hours WTI @ $75.75, headed for $64 - 67
  • 3 hours Saudi-Kuwaiti Talks on Shared Oil Stall Over Chevron
  • 8 hours OPEC's No. 2 Producer Wants to Know How Buyers Use Its Oil
  • 1 hour Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 4 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 9 hours Iranian Sanctions - What Are The Facts?
  • 11 hours U.S. - Saudi Arabia: President Trump Says Saudi Arabia's King Wouldn't Survive "Two Weeks" Without U.S. Backing
  • 3 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 3 hours EU to Splash Billions on Battery Factories
  • 30 mins COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 7 hours China Thirsty for Canadian Crude
  • 10 hours Superhumans
  • 7 hours Who's Ready For The Next Contest?
Alt Text

Why Crypto Miners Are Paying Attention To The Permian

The Permian is literally burning…

Alt Text

The Dark Horse Of The Oil Price Rally

Vietnam is set to break…

Alt Text

Trump Threatens Iran’s Oil Clients

Trump has directed yet another…

Martin Tillier

Martin Tillier

More Info

Trending Discussions

Two Different Uses For Obvious Chart Points

I am not one to baffle with overly technical analysis when it comes to charts. To me, the more obvious the pattern or point is, the more useful it is. The most obvious and basic points to identify on a chart are support and resistance; the highs and lows that a stock has touched over a given time period. The more times it has bounced off that level, the more significant it becomes.

The significance comes in two ways. Obviously, a breakout below a support level, for example, can result in a quick move down, while a bounce off of it can signal underlying strength and a potential move up. To traders the proximity to that obvious level in either scenario is the key. It gives a nearby, and therefore inexpensive, level at which to set a stop loss. This is best demonstrated by two examples, one a breakout and one a bounce.

First, let’s look at a breakout. The above is a 1 year chart for Sandridge Energy (SD), an oil & gas exploration and production (E&P) company. My first thought on seeing this chart was that Sandridge may represent some value as the stock was bouncing around at 52 week lows around the $5.15-$5.20 level. Unfortunately, though, there doesn’t seem to be any value to be had.

SD is a different proposition to the many companies that are making hay in the ongoing shale boom in the U.S. Their properties are concentrated in the Mississippian Lime field, so it is anything but a shale play. In fact, as shale oil becomes cheaper…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News