• 5 minutes Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Starvation, horror in Venezuela
  • 11 mins WTI @ 67.50, charts show $62.50 next
  • 5 hours Mike Shellman's musings on "Cartoon of the Week"
  • 18 mins Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 2 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 4 hours Venezuela set to raise gasoline prices to international levels.
  • 4 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 5 hours Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 3 hours Corporations Are Buying More Renewables Than Ever
  • 31 mins Batteries Could Be a Small Dotcom-Style Bubble
  • 19 hours Oil prices---Tug of War: Sanctions vs. Trade War
  • 18 hours California Solar Mandate Based on False Facts
  • 8 hours Again Google: Brazil May Probe Google Over Its Cell Phone System
  • 8 hours Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
Alt Text

Analysts: SPR Release Won’t Lower Gasoline Prices

U.S. drivers are unlikely to…

Alt Text

War-Torn Yemen Restarts Oil Exports

Despite ongoing fighting, the war-torn…

Alt Text

Goldman: Trade War Won't Crash Oil Prices

In spite of the impact…

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