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by Kevin Hopson
Apache Corp. (APA) recently topped out around the $69.00 level, as my prior analysis predicted. What's next for this oil and gas company?
Position: Hold
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.
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TECHNICAL ANALYSIS
Apache's Recent Topping Pattern
09/22/03 08:57:34 AMby Kevin Hopson
Apache Corp. (APA) recently topped out around the $69.00 level, as my prior analysis predicted. What's next for this oil and gas company?
Position: Hold
| The last time I touched on Apache Corp. (APA), I was calling for a potential top around the $69.00 level. There were two reasons for this. For one, the stock was coming up on prior resistance at this level, which is the site of June's high and the top black parallel line. Also, the moving average convergence/divergence (MACD) was moving lower despite a continued rise in the stock price. Given technical resistance around the $69.00 level and the bearish MACD divergence on the daily chart, it appeared that a potential top was forming. As you can see, this proved to be correct. |
| So where does Apache go from here? It is difficult to say but there are some key price levels to keep your eye on. For example, notice how the stock recently broke below the blue median line and the bottom green parallel line. These two trendlines, coupled with September's downtrend line (top red parallel line), have all converged around the $68.00 level. As a result, I would look for significant resistance here in the near-term. However, if Apache can overcome resistance at this level, I would look for the stock to test the recent double top formation and eventually break out to new highs. |
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| Graphic provided by: Stockcharts.com. |
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| On the flip side, Apache is currently finding support along its 50-day moving average ($65.32). If this support level gives way in the near-term, the stock could see a further decline to the $62.50 to $63.50 range. This is the site of May's uptrend line, the black median line, the bottom blue parallel line and the red median line. As a result, Apache will likely find significant support here should the stock price proceed to pull back. |
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 |
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