Energy Stock Gearing Up for Major Move

by Sam Collins | July 12, 2011 1:00 am

Apache Corp. (NYSE: APA[1]) — This large U.S. independent exploration and production driller has been in a bull market since August 2009. But this year, APA stock has been consolidating its move from $90 before making another run at new highs. The stock has a history of consolidations just under its 20-day and 50-day moving averages where it is now.

The Moving Average Convergence/Divergence (MACD)[2] indicator is now overbought and, with the euro showing weakness, APA could fall to its near-term support at close to $115, and then make a run to the top of the trading channel at $140.

S&P has a “five-star strong buy” on APA with a 12-month target of $160. Our near-term trading target of $140 should take a lot less time to achieve.

• See Sam Collins’ Daily Market Outlook: Why You May Want to Sit Today Out[3]
• See Serge Berger’s Daily Market Outlook: 6 Charts That Show a Market Teetering on the Brink[4]
• See Serge Berger’s Trade of the Day: AutoZone Stock Set to Rev Up Soon[5]

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Source URL: https://investorplace.com/2011/07/trade-of-the-day-apache-corp-nyse-apa-2/

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