Tuesday, April 12, 2016

A Huge Base Breakout In The Oil Sector

Antero Resources is an independent oil and natural gas company; the stock happens in one of the hottest sectors since the January lows which is the energy sector.

$AR is trying to emerge from a 9-month base; I'm always on the look out for breakouts from big bases because a prolonged period of contraction leads to a prolonged period of expansion.

Antero started its base in September of 2014 after being a long term downtrend right along with the entire energy sector.  Once a stock starts to base after a huge decline it typically means that the buyers and sellers have found equilibrium and the sellers are no longer in control.  The new set of shareholders obviously see greener pastures ahead.  At the very end of these bases what you want to see is a pattern of higher lows, this tells you that the sellers are running out of supply and or the buyers are getting antsy and don't want to wait to suck up more supply, exactly what we have seen with Antero, a series of higher lows since

Antero has tightened up considerably right below the breakout level giving us a great risk reward set up.

Previous Articles about bases;

My opinion and outlook are subject to change as new information comes in. 

Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at fzorrilla@zorcapital.com or 646-480-7463.


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

1 comment:

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