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.
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