Anadarko Petroleum Corporation (NYSE: APC) — This major oil and gas exploration and production company, with operations primarily in the United States, the deepwater of the Gulf of Mexico, and Algeria, is in a bull market that began in October 2008.
The stock spent the past year retracing a breakdown that occurred in April. But in December, amid rumors that BHP Billiton (NYSE: BHP), after failing to acquire Potash Corp. (NYSE: POT), has its sights set on APC, the stock broke out on a huge breakaway gap from a major “V” bottom.
Breakaway gaps need not be retraced (covered), so APC may have another major move ahead of it. The rumors have not been confirmed, but based on the current price, the stock is still worth purchasing as a play on the continuing rise in the price of crude oil.
Technically, the breakout has a target of $90-plus. S&P rates APC a “five-star buy” with a target of $140. Buy now for a trade to $100 or for a long-term target of $130-plus.
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