A milder winter means natural gas prices will likely trade within the $3 range. This development is putting pressure on natural gas producers such as ECA. This energy stock is presently at $19.42, up 0.34%. The stock is trading near the bottom of its 52 week trading range of $17.02 to $24.29. For the long term patient investor, $17 provides an attractive entry point to go long ECA. Since November of 2003, this natural resource stock found support at $17. Given its stock chart’s technical weakness, there is no rush to acquire this stock. ECA is presently trading below its 50 and 200 day moving averages, or $20.79 and $20.97 respectively. If $17 cannot be defended, $15 is the next major support level.
January 15, 2013
January 14, 2013
The impending launch of its longly waited next generation of phones is probably causing traders to cover their short positions. If these BB10 phones are well recieved, RIMM is less likely to suffer the same fate as PALM. The stock is presently gaining 10.10% to trade at $14.93 on strong volume. This beaten technology stock is now trading higher than before its last earnings release back in December 2012. RIMM is trading right at its key resistance level of $15. If it can close above this price, the immediate upside stock price targets are its 52 week high of $17.96 and $20. Support points are at $14.21, its 20 and 50 day moving averages. They are $12.40 and $11.10 accordingly.
Despite the double digit unemployment rate and contracting economy, this bank’s stock chart suggests that the worst of European sovereign debt crisis have passed. This Spanish bank is seeing its shares at $8.62, up 0.46%. It is close to its 52 week high of $8.85. If SAN can hold above $8.04, further upside is likely. For the short term, SAN bulls need to see its hold at its 20 day moving average of $8.08. The flattening of its 200 day moving average, presently at $6.87, indicates that a bottoming process is occuring. If a new 52 week high is made, $10 and $12.50 are the next major upside targets. Technically, the stock chart shows upside momentum continuing. SAN remains a stock to buy on dips.
January 10, 2013
Despite quality issues plauging its new models, America’s No. 2 automaker is doubling its quarterly payout to 10 cents. In reaction, F gained 2.67% to close at $13.836. This cyclical stock also made a new 52 week high of $13.94. Short term, the stock appears overbought. It is trading well above its key 20 and 50 day moving averages, or $12.40 and $10.63 respectively. If F can find support at $13, its previous resistance level, further upside is likely. The higher stock price targets are $16.18 and $18.97, its 2011 high. Key to F’s profits are the U.S. housing market and the launch of its new full size pick up truck, the F-150.
With predictions of the price of gold going to $2,000 per ounce this year quickly becoming a fantasy, gold stocks in general have not been kind to their shareholders. None the less, the stock of GG appears to be bottoming. This precious metal stock ended the day at $37.28, up 4.08%. It is trading near its trend line near $34.75. If GG can close above its 20 day moving average of $36.30, it indicates a move higher. These upside targets are $38 and $40. Support are located at $34 and $32. Since April 2012, GG has been trading predominantly between $35 to $45. Its 52 week trading range is $31.54 to $50.74.
January 8, 2013
The one bright spot within the energy sector is the refiners. Looking at the stock chart of VLO, it is in a solid uptrend. This major oil refiner is trading near its 52 week high of $35.66. VLO is presently at $34.63, up 0.83%. If $36.16 is broken, the next upside price target is $53.94. The reason for this energy stock’s strong performance is an improving top and bottom line. The barriers to entry in the oil refining business are considerable. Support for VLO are located at its 20 and 50 day moving averages, or $33.76 and $31.58 respectively. If the stock corrects back to the latter technical indicator, it is a buy. The 200 day moving average is at $27.69.
January 7, 2013
The stock of this copper exploration and development company has been climbing towards the upper end of its trading range of $3 to $4. Technically, this base metals stock has been recovering from its 52 week low of $1.75 reached back in the end of June 2011. It appears that NCU is consolidating its recent gains. On a positive note, the natural resource stock is trading above its 50 and 200 day moving averages, or $3.43 and $3 accordingly. Tempering the enthusiasm for NCU is the fact that this stock has been rising on weak volume. If this copper stock breaks above $4 on decent volume, a buy signal is given. Upside stock price targets are $4.74 and $5. If NCU drifts back to $3, look to buy this stock.
The stock of this metals miner is in the midst of breaking out. TC is presently climbing 4.62% to trade at $4.52. This molybdenum producer has broken resistance at $4.50. If this commodity stock can close above this price point, $6.18 and $6.71 are the next upside targets. The bullish sentiment can be attributed to expectations of greater demand for steel by China and hopes that their copper and gold mine will be in operation by the end of 2013. Immediate support are located at its 20 day moving average of $3.76 and $3.26. TC is trading above its 200 and 50 day moving averages, or $3.67 and $3.21 accordingly. This natural resource stock is to be bought on pull backs.
January 3, 2013
With the arrival of winter, demand for natural gas is supposed to go higher. The current situation suggests otherwise. A mild winter and robust production is leading to a drop in commodity prices. This is reflected in the stock chart of natural gas producer ECA. This energy stock is trending down, threatening to retest its 52 week low of $17.02. This commodity stock finished the day at $19.89, up 1.38%. ECA is trading below its 50 and 200 moving averages, or $21.27 and $21 accordingly. A further negative development is the probable forming of the Death cross, where the 50 day moving average crosses the 200 day moving average on the downside. If ECA can defend its 52 week low, it becomes a buy. If not, further support is found at $15.36.
After rising from its 52 week low of $9.78 back in July 2012 to make its recent 52 week high of $17, this Swiss bank stock is in correction mode. UBS ended the day at $16.00, down 2.20%. At this point, any gains in this financial stock is an opportunity to sell. If UBS cannot close above its 20 day moving average of $16.14, further downside is likely. Immediate support are found at its 50 day moving average of $15.37, $14.62 and $13.40. Long term support is found at its 200 day moving average of $12.84. At this level, UBS becomes attractive again.