Sunday, November 13, 2011 5:28:55 PM
Apache (APA) -
http://stockpickr.com/5-breakout-trades-avoid-eurozone-fallout.html
>>> Independent energy company Apache (APA) is another name that’s gotten hammered this year, dragged lower as waning demand for oil and gas caused a drop in energy commodity prices. Like Prudential, though, Apache is a stock that’s on the verge of a technical turnaround in shares.
That’s thanks to an inverse head and shoulders setup. The inverse head-and-shoulders setup is a formation that indicates exhaustion among sellers -- and admittedly, this pattern in particular looks pretty exhausted. Frankly, it’s not your “textbook” inverse head and shoulders pattern. But while its appearance is a bit less defined than the norm, the trading implications are exactly the same.
This setup has a neckline at $105 -- that’s the price level that we’ll need to see get breached before it makes sense to take a position in this stock. Until then, it’s not a high probability trade. When that price gets taken out, I’d suggest a protective stop just under the right shoulder at $95.
Apache shows up on a recent list of 6 Stocks With Heavy Insider Buying. <<<
http://stockpickr.com/5-breakout-trades-avoid-eurozone-fallout.html
>>> Independent energy company Apache (APA) is another name that’s gotten hammered this year, dragged lower as waning demand for oil and gas caused a drop in energy commodity prices. Like Prudential, though, Apache is a stock that’s on the verge of a technical turnaround in shares.
That’s thanks to an inverse head and shoulders setup. The inverse head-and-shoulders setup is a formation that indicates exhaustion among sellers -- and admittedly, this pattern in particular looks pretty exhausted. Frankly, it’s not your “textbook” inverse head and shoulders pattern. But while its appearance is a bit less defined than the norm, the trading implications are exactly the same.
This setup has a neckline at $105 -- that’s the price level that we’ll need to see get breached before it makes sense to take a position in this stock. Until then, it’s not a high probability trade. When that price gets taken out, I’d suggest a protective stop just under the right shoulder at $95.
Apache shows up on a recent list of 6 Stocks With Heavy Insider Buying. <<<
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