Looks like a long should be under way very soon. Theres been some underlying impulse evident in this stock and I do have a strong feeling that bulls will be participating at, or near this level.
I have analysed this stock carefully and think it's upside target could be 12-17$ per share in the future, with downside limited being limited to $7 (In my opinion only)
Theres also some divergences to note, but I didn't put them on the chart. But they further support intentions. Breaking this sideways TL resistance will confirm impulse and hopefully provide a nice entry point. A lovely piercing candle confirmed the bulls at a nice reliable level. Trades like this are nice. But complicated.
Best of luck traders,
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However saying that, oil changing direction today, whilst Encana was at a juncture has certainly aided in the breakout of this stock thats undeniable. Saying this, people are still feeling starry eyed from natural gas selloffs.
I think this stock has under performed in general in comparison to the S&P and the fuel and oil industry in general... And the fundamentals aren't brilliant, in fact that's being generous...
There are no condition for the bear to short yet, because the bear channel was broken. The wedged trading range makes the bear channel strength less influence. The best Bear gets is to sell top of the bear wedge, betting on trading range.