Anadarko Petroleum Corp. (APC) — This oil and gas producer’s activities are primarily in the United States, the deepwater of the Gulf of Mexico and Algeria.
Its stock fell from more than $80 in June of last year to just under $25 in October. Since then, it has appeared to be establishing a bottom from which it could launch a new bull market.
But recently it bumped into its 200-day moving average while its upside volume was declining. Downside volume now appears to be controlling the stock’s moves and with that the stochastic has issued a sell signal.
It’s been several months since the Trade of the Day has proposed a short sale, but APC looks like a good candidate for a move to under $35 from almost $42.
As with all short sales, be sure that your broker can borrow stock for you and place a stop-loss order so that in the event the trade goes against you the loss will be limited.
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