Trading By the Numbers: Big Pullbacks in Black Gold
Whether it is the refiners or the independents, traders and active investors are taking advantage of recent strength in the oil patch to take profits.
Ahead of trading on Wednesday, two oil independents – Cabot Oil & Gas Corp (COG) and Range Resources Corp (RRC) – pulled back by more than 6% and 4%, respectively. In both instances, the pullbacks have came in the wake of three-day rallies that took the stocks – especially Cabot Oil & Gas – near overbought levels.
Any strong selling over the next two days almost certainly will put both of these stocks in oversold territory. And insofar as both are trading above their 200-day moving averages, where pullbacks are often met with strong buying, traders looking to buy weakness above the 200-day may want to keep eye on on these stocks.
Fellow energy company Tesoro (TSO) has been dominanted by sellers for the past two days, selling that has sent the stock to its 200-day moving average on an intraday basis, and leaving the stock just a few ticks outside of oversold territory. Note that TSO’s current pullback comes after the stock rallied to its highest level since April.
The stocks in today’s report were drawn from the data and research available through The Machine. To find out more, click here.
David Penn is Editor in Chief of TradingMarkets.com