EquityCast

Rising Wedge Break Out Moment

Long
NASDAQ:CDEV   None
Good Morning~

CDEV is looking very strong on a steadily rising Oil WTI and sustained oil prices over $90 USD and macroeconomic tailwinds (Ukraine War, possible sanctions of Russian oil and continued underinvestment in the O&G space as well as capital discipline from the U.S. shale patch).

I've outlined a likely scenario in the upcoming days.

Technical indicators: RSI and MacD still have a little room to run and we're getting toppy if you look at the bollinger bands. That said, if you rewind back to 1 year ago, CDEV had an incredible run in Q1 that defied traditional technical analysis and I'm expecting something similar.

We have long-term resistance (red line) which CDEV will be looking to break out of this week and I predict there will be a second sell-off in the 9s (back down to the blue support line) before another strong bounce and finally breaking out of this ascending wedge for good to establish a new long-term trading range.

Happy hunting!
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