Breakout for EOG Resources (EOG) in the Charts?

A key level of resistance has formed in the chart of EOG Resources Inc. (EOG).  If this level is surpassed, a breakout is expected…

EOG Resources Inc. (EOG) is an oil and gas producer with acreage in several U.S. shale plays, including the Permian Basin, the Eagle Ford, and the Bakken. The company’s operations are also spread across China and Trinidad 

The company’s cost reduction strategy has enabled it to navigate through current market uncertainties. It is one of the leading companies in the Bakken play and the largest in the Eagle Ford, with 1,900 undrilled premium locations. EOG’s access to these key shale resources should support long-term production growth.

The company has a strong balance sheet, with abundant liquidity. Its gross margin of 50.1% is well above the industry average. In its most recent reported quarter, both its earnings and revenue fell year over year, but analysts expect earnings to rise 167.30% in its upcoming announcement.

Based on its forward P/E of 11.34, the stock is trading at a low valuation, but has shown recent bullish momentum. This has led to a Momentum Grade of B in our POWR Ratings service. The company’s overall grade is a B, which translates into a Buy rating.

Take a look at the 1-year chart of EOG below with my added notations…

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