Monday, January 21, 2013

Apache About to Make a Comeback

Apache Corp. (NYSE:APA) — This driller, which engages in the exploration, development and production of natural gas, crude oil and natural gas liquids (NGLs), has been in a bear market since August when it broke from its 200-day moving average at $120. Since then, it has been in a sharp decline that accelerated following a continuation gap at $90.

Yesterday�s late rally produced a reversal from our proprietary indicator, the Collins-Bollinger Reversal (CBR). This could signal that a tradable rally is about to occur with $90 as the objective.

S&P has a �five-star strong buy� on APA with a 12-month target of $145. Our near-term trading target should take much less time to reach.

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