As the broader indices continue their march toward last year’s April peak, a number of individual stocks are moving closer to 52-week highs of their own.
Although it’s not evident by looking at either the chart of crude oil or the Select Sector SPDR-Energy ETF (NYSE:XLE), the energy sector is home to no fewer than 12 stocks that are nearing potential breakout levels. This is a fairly diverse list that runs the gamut from Exxon Mobil (NYSE:XOM) to lesser-known names such as Gulfport Energy Corp. (NASDAQ:GPOR), but what all have in common is their proximity to their 52-week highs. Energy investors should watch these charts not just for specific investment opportunities, but also as an indication of where the rest of the sector may be headed in 2012.
Keep in mind that most of these stocks have come a long way in a relatively short period, and any breakout that follows an extended rally is vulnerable to failure. As a result, the more conservative play — assuming some of these names do indeed exceed their former highs — is to let them break out, then pull back to the former resistance levels (the new support), before you consider a trade. This approach creates a better risk-reward trade-off for anyone looking to take advantage of a larger upside move.
Below is a list of 12 energy stocks, with Tuesday’s closing price, their 52-week high and the size of the move needed to break out.
Exxon Mobil
NYSE:XOM
Tuesday’s close: $87.18
52-week high: $88.23
Percent move needed for breakout: 1.2%
Chevron
Click to EnlargeNYSE:CVX
Tuesday’s close: $106.72
52-week high: $110.99
Percent move needed for breakout: 4%
Royal Dutch Shell
Tuesday’s close: $72.13
52-week high: $77.97
Percent move needed for breakout: 8.1%
Anadarko Petroleum
Click to EnlargeNYSE:APC
Tuesday’s close: $78.99
52-week high: $85.50
Percent move needed for breakout: 8.2%
Plains Exploration & Production
Click to EnlargeNYSE:PXP
Tuesday’s close: $37.24
52-week high: $41.96
Percent move needed for breakout: 12.7%
Noble Energy
Click to EnlargeNYSE:NBL
Tuesday’s close: $100.46
52-week high: $102.57
Percent move needed for breakout: 2.1%. Note: NBL already broke out to a new high on Monday before giving back ground on Tuesday.
Pioneer Natural Resources
Click to EnlargeNYSE:PXD
Tuesday’s close: $98.23
52-week high: $106.07
Percent move needed for breakout: 8%
Concho Resources
Click to EnlargeNYSE:CXO
Tuesday’s close: $102.02
52-week high: $110.89
Percent move needed for breakout: 8.7%
Cheniere Energy
Click to EnlargeAMEX:LNG
Tuesday’s close: $11.30
52-week high: $12.81
Percent move needed for breakout: 13.4%
SeaDrill
Click to EnlargeNYSE:SDRL
Tuesday’s close: $35.73
52-week high: $38.49
Percent move needed for breakout: 7.7%
Dresser-Rand Group
Click to EnlargeNYSE:DRC
Tuesday’s close: $53.29
52-week high: $56.53
Percent move needed for breakout: 6.1%
Gulfport Energy
Click to EnlargeNASDAQ:GPOR
Tuesday’s close: $33.30
52-week high: $38.09
Percent move needed for breakout: 14.4%
As of this writing, Daniel Putnam did not hold a position in any of the aforementioned securities.
