Energy has been in focus incessantly as the media harps on about crude and their have been recent calls for $10 oil. When we here predictions like that you start to wonder has all the bad news been priced in. Those types of forecasts are just noise looking for publicity. Instead pay attention to what the stocks of individual names in the sector are trying to tell you. Lets examine FANG. Below is how we looked into FANG in our Tuesday 2/3 Game Plan.
Sticking with the energy theme FANG is a name that came public in October 2012 and has been up almost 300% since. It is acting well as of late too with a YTD gain of 17% and higher by 34% over the last one year period. The stock is on a 4 week winning streak, up almost 15% in the process, and notice how all 4 closed well into the upper half of the weekly range, a bullish sign. It has lost ground the last 2 times it reported earnings with losses of 5.6 and 3.3% on 11/4 and 8/5 but the chart has been coiling and has formed an ascending triangle pattern that forms is conjunction with the round 70 handle. Buy stop above the pattern at 70.25.