Newfield Exploration is forming a bottom from a technical perspective.
From a fundamental perspective, I view NFX as a way to participate on an oversold bounce in the energy market.
The last nine months have seen selloffs and consolidations followed by new lows.
The price action appears to have changed. The last rally indicates a low-risk entry on the long side is coming into place here.
The downside risk is a break of 32 and the upside potential is a rally to 37-38, which creates a 4-5:1 reward:risk ratio. The stop that I will use is 3 average ranges.
Technical Tim Wed, May 9, 2012 2:15PM EST