Look for New High Breakout on APC

12/01/2009 12:01 am EST


Anadarko Petroleum Corp. (APC) - This oil and gas exploration and production company with operations primarily in the United States, the Gulf of Mexico, and Algeria, is in a bull market that began in October 2008.

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It tracked its 50-day moving average until July, when it broke from just above $50 and ran to $60 and to $65, where it is now consolidating in a right triangle. 

This formation is generally considered to be a bullish consolidation, and a break from it at $65 could carry APC to new highs and a target of $75 to $80. 

But if the support line at $60 fails to hold, look for APC to pull back to just above the 200-day moving average. 

Stop-loss orders should be placed at just below $58 to protect against a breakdown.

By Sam Collins of OptionsZone.com

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