Working Money magazine.  The investors' magazine. Advantage



Article Archive | Search | Subscribe/Renew | Login | Free Trial | Forgot ID?



Apache Corporation Testing Key Resistance

09/04/03 12:10:49 PM
by Kevin Hopson

Apache Corp. has been in a steady uptrend for the last 10 months but is now approaching a key resistance level.

Security:   APA
Position:   Hold

Apache Corp. (APA) has been in a nice uptrend since November of last year, appreciating roughly 47 percent since then. However, the stock is now testing key resistance around the $69.00 level. Will Apache break through and hit a new 52-week high in the process or will the stock proceed to pull back from current levels? If we look at the one-year chart for Apache, we may be able to draw our own conclusion.

For example, notice how the moving average convergence/divergence (MACD) put in higher lows between mid-June and early August, while the stock price continued to decline. This was a bullish divergence on the chart and indicated a potential bottoming pattern. As you can see, Apache eventually broke to the upside, thus confirming this pattern.

Graphic provided by:
Unfortunately, the MACD is now putting in lower highs despite the fact that the stock price continues to move higher. Additionally, Apache is facing significant overhead around the $69.00 level, site of its 52-week high (dotted red line) and the bottom green parallel line. Given the bearish divergence we are seeing on the chart and substantial resistance at slightly higher prices, I would be cautious on the stock in the near-term.

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.

Glen Allen, VA
E-mail address:

Click here for more information about our publications!

Comments or Questions? Article Usefulness
5 (most useful)
1 (least useful)


Date: 09/10/03Rank: 4Comment: 

S&C Subscription/Renewal

Request Information From Our Sponsors 

DEPARTMENTS: Advertising | Editorial | Circulation | Contact Us | BY PHONE: (206) 938-0570

PTSK — The Professional Traders' Starter Kit
Home — S&C Magazine | Working Money Magazine | Advantage | Online Store | Traders’ Resource
Add a Product to Traders’ Resource | Message Boards | Subscribe/Renew | Free Trial Issue | Article Code | Search

Copyright © 1982–2020 Technical Analysis, Inc. All rights reserved. Read our disclaimer & privacy statement.