HOT TOPICS LIST
- MACD
- Fibonacci
- RSI
- Gann
- ADXR
- Stochastics
- Volume
- Triangles
- Futures
- Cycles
- Volatility
- ZIGZAG
- MESA
- Retracement
- Aroon
INDICATORS LIST
LIST OF TOPICS
PRINT THIS ARTICLE
by Kevin Hopson
Nexen Inc. recently broke out of a seven-month trading range and is now forming a bullish pennant, indicating a potential move higher in the near-term.
Position: Accumulate
Kevin Hopson
Kevin has been a technical analyst for roughly 10 years now. Previously, Kevin owned his own business and acted as a registered investment advisor, specializing in energy. He was also a freelance oil analyst for Orient Trading Co., a commodity futures trading firm in Japan. Kevin is currently a freelance writer.
PRINT THIS ARTICLE
TRIANGLES
Bullish Pennant Formation for Nexen Inc.
05/27/03 10:25:29 AMby Kevin Hopson
Nexen Inc. recently broke out of a seven-month trading range and is now forming a bullish pennant, indicating a potential move higher in the near-term.
Position: Accumulate
| I touched on Nexen Inc. (NXY) just last week. More specifically, I stated that Nexen's recent channel breakout would likely lead to higher prices in the long-term. Additionally, I recommended accumulating shares on a potential pull back to the $22.00 to $22.50 range, site of the stock's 200-day moving average and the top of Nexen's former trading channel. As expected, the stock found support here. |
| However, Nexen is now showing signs of moving higher again. For example, if you look at the one-year chart, you will notice that the stock has formed a bullish pennant. This is basically a symmetrical triangle or a pattern of lower highs and higher lows, as indicated by the green trendlines. Since this formation tends to act as a continuation pattern and the short-term trend is positive, I believe Nexen will break to the upside in the near-term. |
|
| Graphic provided by: Stockcharts.com. |
| |
| If so, I think the $23.50 to $24.00 range is an ideal target, as this is site of the 61.8 percent retracement level from the Aug. '02 to April '03 decline and last September's corrective high. As a result, I would continue to accumulate shares of Nexen on any price weakness. |
Kevin has been a technical analyst for roughly 10 years now. Previously, Kevin owned his own business and acted as a registered investment advisor, specializing in energy. He was also a freelance oil analyst for Orient Trading Co., a commodity futures trading firm in Japan. Kevin is currently a freelance writer.
| Glen Allen, VA | |
| E-mail address: | hopson_1@yahoo.com |
Click here for more information about our publications!
Comments
Date: 06/03/03Rank: 5Comment:
|
Request Information From Our Sponsors
- StockCharts.com, Inc.
- Candle Patterns
- Candlestick Charting Explained
- Intermarket Technical Analysis
- John Murphy on Chart Analysis
- John Murphy's Chart Pattern Recognition
- John Murphy's Market Message
- MurphyExplainsMarketAnalysis-Intermarket Analysis
- MurphyExplainsMarketAnalysis-Visual Analysis
- StockCharts.com
- Technical Analysis of the Financial Markets
- The Visual Investor
- VectorVest, Inc.
- Executive Premier Workshop
- One-Day Options Course
- OptionsPro
- Retirement Income Workshop
- Sure-Fire Trading Systems (VectorVest, Inc.)
- Trading as a Business Workshop
- VectorVest 7 EOD
- VectorVest 7 RealTime/IntraDay
- VectorVest AutoTester
- VectorVest Educational Services
- VectorVest OnLine
- VectorVest Options Analyzer
- VectorVest ProGraphics v6.0
- VectorVest ProTrader 7
- VectorVest RealTime Derby Tool
- VectorVest Simulator
- VectorVest Variator
- VectorVest Watchdog