Todays Big Stock: Pioneer Natural Resources Compa (NYSE: PXD)

Pioneer Natural Resources Company is a holding company. It is an independent oil and gas exploration and production company with existing operations in the United States and South Africa. It explores, develops and produces oil and gas reserves. The Spraberry oil field located in West Texas, the Raton gas field located in southern Colorado, the Hugoton gas field located in southwest Kansas and the West Panhandle gas field located in the Texas Panhandle anchors its asset base. It has exploration and development opportunities and/or oil and gas production activities in the Eagle Ford Shale and Edwards Trend areas of South Texas, the Barnett Shale area of North Texas and Alaska, and internationally in South Africa. Its production operations are located in Texas, Kansas, Colorado and Alaska, and internationally in South Africa.

To review Pioneer’s stock, please take a look at the 1-year chart of PXD (Pioneer Natural Resources Company) below with my added notations:

PXD has been selling off since April. However, over the last month the stock seems to be making an attempt to break out of its downtrend. On it’s way down, and now back up, the stock has usually found important price levels at each increment of $10. The stock bottomed at $60 (blue), found support at $70 (teal) in August & September while hitting the $80 resistance (navy) at the same time. So, if the stock moves higher, might a trader expect $90 (light blue) to be the next resistance?

The Tale of the Tape: PXD seems to be breaking higher. The stock has created price levels at $60, $70 and $80. A long trade could be made on a pullback to $80 with an expectation of a run to $90. In that case, a stop should be placed under the $80 level.  A break of the $80 support would negate the forecast for a move higher and a short trade could be made instead.

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

Todays Big Stock: Exxon Mobil Corporation Common (NYSE: XOM)

Exxon Mobil Corporation is a manufacturer and marketer of commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a range of specialty products. It also has interests in electric power generation facilities. Exxon Mobil has several divisions and hundreds of affiliates with names that include ExxonMobil, Exxon, Esso or Mobil. Divisions and affiliated companies of ExxonMobil operate or market products in the United States and other countries of the world. Their principal business is energy, involving exploration for, and production of, crude oil and natural gas, manufacture of petroleum products and transportation and sale of crude oil, natural gas and petroleum products.

Before discussing potential trading opportunities for Exxon Mobil, please take a look at the 1-year chart of XOM (Exxon Mobil Corporation) below with my added notations:

XOM has an important, long-term price level at $80 (navy) and another lower, shorter-term level down at $75 (red/green). After breaking below the $80 level in August, XOM fell into a sideways consolidation with $75 being clear resistance. In the beginning of October, the stock broke above the $75 level and has made its way back up to the $80 level.

The Tale of the Tape: Now that XOM is back above $75, that level should act as support on any pullbacks. If that does in fact happen, a long trade at $75 could be made with a stop below that level. A long trade would also be advisable if XOM were to break above $80. If a trader is bearish on XOM and/or the market in general, a short trade could be made here at $80 with a stop above that level

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

 

Todays Big Stock: Synopsys, Inc. (NasdaqGS: SNPS)

The rally that never ends! Thanks to the market’s recent rally, a lot of stocks are now moving back above key levels that they had previously broken below. This should be a sign of higher prices for those stocks, even if those moves are only temporary. One stock of many that has broken back above a resistance level would be that of Synopsys, Inc.

Synopsys, Inc. is engaged in providing technology solutions used to develop electronics and electronic systems. It supplies the electronic design automation software that engineers use to design, create prototypes for and test integrated circuits, also known as chips. It also supplies software and hardware used to develop the systems that incorporate integrated circuits and the software that runs on those integrated circuits. Its intellectual property products are pre-designed circuits that engineers use as components of larger chip designs rather than redesigning those circuits themselves. It also provides technical services to support its solutions. Its products and services are organized into four groups: Core EDA; IP and System-Level Solutions; Manufacturing Solutions and Professional Services.

Please take a look at the 1-year chart of SNPS (Synopsys, Inc.) below with my added notations:

SNPS has an important, long-term price level at $26 (green/red) and another level up at $28 (purple). After breaking below the $26 level in June, SNPS has rallied back up and hit that $26 level as resistance several different times. Last week, the stock broke back above the $26 level. Since a market pullback should be approaching, traders should watch SNPS for a possible pullback to $26.

The Tale of the Tape: Now that SNPS is back above $26, that level should act as support on any pullbacks. If that does in fact happen, a long trade at $26 might be made with an expectation of a run to $28. A break below $26 would negate the forecast for a move higher and a short position could be entered.

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

 

Todays Big Stock: Crosstex Energy, Inc. (NasdaqGS: XTXI)

For today’s stock, I am going to stick with last week’s 52-week high topic that was reviewed on THOR. So, when it comes to entering a stock hitting a 52-week high, I prefer to look for ones hitting a “NEW” high. To me, his would be a stock that hasn’t hit a new 52-week high in quite some time. In addition, and more importantly, I want the stock to have broken through a key area of resistance. This way I know that it wasn’t just any move higher. One such stock that fits that description would be that of Crosstex Energy, Inc.

Crosstex Energy, Inc. is engaged in the gathering, transmission, processing and marketing of natural gas and natural gas liquids through its subsidiaries. Currently, the company owns 25% of the interest in Crosstex Energy, L.P. through its wholly owned subsidiaries. The Crosstex partnership is an independent midstream energy company. Crosstex Energy GP, LLC, a wholly owned subsidiary of the company, is the general partner of the partnership, which owns a 2% general partner interest and all of the incentive distribution rights in the partnership. The partnership focuses on the gathering, processing, transmission and marketing of natural gas and natural gas liquids, which the partnership manages as regional segments

To review Crosstex Energy’s stock, please take a look at the 1-year chart of XTXI (Crosstex Energy Inc.) below with my added notations:

XTXI has been repeatedly running up against the $15 resistance (red) for the last 4 months. That $15 resistance meets my definition of a clear resistance level that would signify an important 52-week high breakout if XTXI could manage to break above it. At the same time, XTXI seems to have formed an up trending support (green) level that appears to be around $13 at this time.

The Tale of the Tape: XTXI has formed a key resistance level at $15, which would be considered a 52-week high breakout if the stock can break above it. A long trade could be entered on a breakout above $15, or if XTXI pulls back a bit further to the up trending support level near $13, with a stop set below either entry level.

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

Todays Big Stock: Cooper Industries, plc (Irelan (NYSE: CBE)

Sticking with yesterday’s GPRO theme, sometimes you can actually come across a stock where the trade is obvious. I don’t necessarily mean obvious to a seasoned trader, I’m referring to a trade that even a new trader can see is obvious. A stock that appears to have that very clear trading opportunity would be that of Cooper Industries Plc.

Cooper Industries is engaged in the manufacturing, marketing and selling of electrical products and providing services worldwide. Cooper has manufacturing facilities in 21 countries. Operations in the United States are conducted by wholly owned subsidiaries of Cooper. The company has two segments: Energy and Safety Solutions and Electrical Products Group. The company serves four markets: the industrial, commercial, utility and residential markets. Cooper also serves the electronics and telecommunications markets. Markets for Cooper’s products and services are worldwide, though the United States is the primary market. In July 2010, Cooper and Danaher Corporation completed the formation of a joint venture combining its Tools business with certain Tools businesses from Danaher’s Tools and Components Segment.

Before discussing potential trading opportunities, please take a look at the 1-year chart of CBE (Cooper Industries Plc) below with my added notations:

As you can see from the chart above, CBE had a clear level of resistance at $50 (red). The stock had successfully tested that level 2-3 times over the last 2 months. Now that the stock has broken above that level, $50 is acting as support (green) just as a trader would expect.

The Tale of the Tape: The current trading opportunity on CBE is relatively simple: Buy on a pullback to $50, with a stop placed under that level. However, if the stock were to break that $50 level, a short trade could also be made in expectation of a fall to the $44-45 area.

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