Endeavour International Corporation is an independent oil and gas company engaged in the exploration, development and acquisition of energy reserves in the United States and United Kingdom. Endeavour has four producing fields in the United Kingdom, including Alba, Bittern, Enoch and Goldeneye. The Goldeneye field represents nearly all of its gas production in the United Kingdom. As of December 31, 2010, Endeavour’s estimated proved reserves were 18.4 million barrels of oil equivalent, of approximately 70% were located in the United Kingdom and approximately 30% were located in the United States, and 19.4% of which were proved developed reserves. As of December 31, 2010, the four producing fields in the United Kingdom had a combined 1.6 million barrels of proved oil reserves.
Please take a look at the 1-year chart of END (Endeavour International Corporation) below with my added notations:
Over the last 9 months, END has formed several important price levels. The main price you will notice is the $10 level (navy) which was a strong resistance last year and most recently a support. Next, you can see the previous level of $8 (blue) from August until November. Lastly, the level of $6 (l. blue) was the bottom most level of support from October through December.
The Tale of the Tape: Currently, the levels to watch on END are $10, $8, and $6. If END pulls back to $10, you could enter a long position with a stop placed below $10. However, if the stock breaks the $10 support, a short trade should be made with a stop placed above $10. Other potential trades in the future: Long plays could be made on pullbacks to $8 and $6; shorts could be entered on breaks of $8 and $6.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT