WPX Energy Inc (NYSE:WPX) — WPX was first reviewed by me on April 12, 2016, suggesting a buy at $7 with a target of $8.50. I am obviously delighted by the subsequent advance, but at the same time wish that I had followed the sell signal on Jan. 5 at north of $15. Now that same system is presenting another buying opportunity by flashing twin CBR Buy signals this month at $12.60 and $12.92.
On Nov. 3, Standard & Poor’s Capital IQ upgraded its opinion of WPX stock from “buy” to “strong buy,” with a five-star rating. And on Feb. 23, it issued an analyst research note saying that it “maintains strong buy view on shares of WPX Energy,” raising their 12-month target to $22, an increase of $2. The note said that they believe that their growth outlook is justified by WPX”s strong oil growth outlook, which they forecast to be over 30% in 2017 and “about 60% in 2018.”
Since its 12-monthlow at under $4 per share, WPX stock has advanced on a series of “step-ups” with the bottom of each decline forming a bullish support line. My internal system, the Collins-Bollinger-Reversal (CBR), is more sensitive to directional changes with this chart. Thus, the recent “Twin CBR Buys” at the apex of a right triangle may be more significant than when applied to other stock charts. However, that significance works both for bullish and bearish results.
For example, if the support line at $13 and the 200-day moving average at $12.07 were to be penetrated, the result would be a significant sell signal. However, because the overall trend is bullish and the fundamentals are strong, we are provided with an excellent opportunity to purchase this mid-cap oil and gas exploration company at a reasonable price. Thus buy WPX Energy at $13 with a trading target of $18 for a proposed gain of over 36%.
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