Atlas Pipeline Partners, L.P (NYSE: APL)

Atlas Pipeline Partners, L.P. engages in gathering and processing natural gas in the Mid-Continent and Appalachia regions; and transporting natural gas liquids in the Mid-Continent region. The company owns and operates approximately 9,100 miles of intrastate natural gas gathering systems located in Oklahoma, Kansas, Texas, and Tennessee that gather gas from wells and central delivery points, and deliver natural gas to the company’s natural gas processing plants, as well as to the third-party pipelines; approximately 100 miles of active natural gas gathering systems located in Tennessee; and 7 natural gas processing plants with an aggregate capacity of approximately 610 million cubic feet per day in Oklahoma and Texas. It provides natural gas gathering and processing services in the Permian, Anadarko, and Appalachian Basins. The company also owns approximately 2,200 mile common-carrier pipeline system that transports NGL’s from New Mexico and Texas to Mont Belvieu, Texas. Atlas Pipeline Partners, L.P. was founded in 1999 and is based in Moon Township, Pennsylvania.

Please take a look at the 1-year chart of APL (Atlas Pipeline Partners, L.P.) below with my added notations:

APL has been hitting a very important level of resistance at $36 (red) for the last 6 or 7 months. No matter what the market has or has not done over that period of time, APL has not been able to break through that area of resistance. If the market can manage to move higher APL would probably break above that resistance and most likely move higher from there.

The Tale of the Tape: APL has a key level of resistance at $36. If APL were to break through that resistance, a long position would be recommended with a stop loss placed below $36.

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!

Good luck!

Christian Tharp, CMT