Oil stocks have seemed impervious recently to the negative news that has hampered the group from a very long period of time. When stocks begin to shrug off bad news and go higher that is normally a pretty good sign that at least a bottoming process is underway. In that scenario which I believe we are in it is good to look for potential buys from best of breed players. RSPP fits the bill. It has an interesting set up and this week should give clarity whether it will flourish above the 30 number or be subject to life below it as it has for almost one and a half years. Below is originally how we looked at the name in our Thursday 3/10 Game Plan.
Stocks that can be bought near their 200 day SMAs are RSPP. RSPP is a best of breed energy play up 7% YTD and lower by 8% over the last one year period. Earnings have been well received with gains of 11.5, 1 and 1.7% on 2/25, 11/3 and 5/13 and a loss of 6.4% on 8/4. The stock has traded between the round 20-30 numbers with no weekly CLOSES below 20 (only week finishing below 20 was week ending 2/12/16) dating back to the first 3 weeks it started trading ending between 1/17-31/14 (all traded below intraweek). The 30 figure was touched or traded above intraweek the weeks ending 11/21/14, 6/12-19/15 and 11/20/15 but no CLOSES above. The stock is higher the last 3 weeks by 32% and it is not one of those cheap single digit names. Look to enter on a pullback toward the 200 day SMA at 25.55.