Texas Pacific Land Corp (
TPL) has been on an absolute tear recently, and the chart is showing a classic, highly constructive setup for swing traders.
After grinding through a massive, multi-month consolidation zone (what we’re labeling as the "1st base"), the stock staged an explosive breakout.
Now, it's digesting those gains and setting up for what looks like its next leg higher.
The Technicals: Price Action & Volume
The 1st Base Breakout: The stock spent months chopping sideways in a clearly defined Stage 1 base before ripping higher.
The breakout was fueled by massive institutional accumulation—just look at the volume thrusts on the way up.
Constructive 2nd Base: Since hitting recent highs,TPL has been consolidating tightly in a "2nd base" just under the $550 level. It's holding its ground beautifully.
Volume Footprint: This is exactly what you want to see. We had a clear volume climax during the markup phase, and now volume is drying up significantly as the stock flags sideways. Sellers are stepping away, and supply is tightening.
Relative Strength: The stock is boasting a formidable RS Rating of 93.8 and a strong U/D Ratio of 2.0. It is drastically outperforming the broader market.
The Caution Flag: Moving Average Extension
While the setup is incredibly bullish, patience is key here. The stock is currently extended from its 50-day moving average.
The ATR% Multiple from the MA is currently sitting at 6.44.
Ideally, we want to see a 4x multiple max to ensure a safer risk/reward entry.
We need to let the stock build this right side of the base a bit longer to allow the moving averages to catch up, or wait for a very tight pivot to form before putting money to work.
The Fundamentals
The price action isn't happening in a vacuum; it’s backed by solid, consistent earnings and sales growth.
The most recent quarter (Feb 2026) showed a 14% jump in Sales and a 4% increase in EPS.
This comes on the back of consecutive quarters of double-digit sales growth, providing the fundamental fuel needed to sustain a prolonged uptrend.
The Game Plan
KeepTPL on the top of your watchlist.
Let it finish digesting this recent run and allow the moving averages to close the gap.
Watch for a decisive breakout above the current 2nd base resistance on expanding volume as your trigger.
TPL) has been on an absolute tear recently, and the chart is showing a classic, highly constructive setup for swing traders. After grinding through a massive, multi-month consolidation zone (what we’re labeling as the "1st base"), the stock staged an explosive breakout.
Now, it's digesting those gains and setting up for what looks like its next leg higher.
The Technicals: Price Action & Volume
The 1st Base Breakout: The stock spent months chopping sideways in a clearly defined Stage 1 base before ripping higher.
The breakout was fueled by massive institutional accumulation—just look at the volume thrusts on the way up.
Constructive 2nd Base: Since hitting recent highs,
TPL has been consolidating tightly in a "2nd base" just under the $550 level. It's holding its ground beautifully.Volume Footprint: This is exactly what you want to see. We had a clear volume climax during the markup phase, and now volume is drying up significantly as the stock flags sideways. Sellers are stepping away, and supply is tightening.
Relative Strength: The stock is boasting a formidable RS Rating of 93.8 and a strong U/D Ratio of 2.0. It is drastically outperforming the broader market.
The Caution Flag: Moving Average Extension
While the setup is incredibly bullish, patience is key here. The stock is currently extended from its 50-day moving average.
The ATR% Multiple from the MA is currently sitting at 6.44.
Ideally, we want to see a 4x multiple max to ensure a safer risk/reward entry.
We need to let the stock build this right side of the base a bit longer to allow the moving averages to catch up, or wait for a very tight pivot to form before putting money to work.
The Fundamentals
The price action isn't happening in a vacuum; it’s backed by solid, consistent earnings and sales growth.
The most recent quarter (Feb 2026) showed a 14% jump in Sales and a 4% increase in EPS.
This comes on the back of consecutive quarters of double-digit sales growth, providing the fundamental fuel needed to sustain a prolonged uptrend.
The Game Plan
Keep
TPL on the top of your watchlist. Let it finish digesting this recent run and allow the moving averages to close the gap.
Watch for a decisive breakout above the current 2nd base resistance on expanding volume as your trigger.
Catch the move before it happens - ft.wtf/subscribe
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Catch the move before it happens - ft.wtf/subscribe
Join 2,000+ traders.
Join 2,000+ traders.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.