A Noble Energy Plan

Interactive Brokers’ Trader's Insight

By Gary Christie

This week, using Trading Central’s Technical Event® screener, I searched for U.S. stocks that have listed options, classic technical patterns with a possible price move of 15% or more. One name caught my attention as the stock remains in a well-defined uptrend since March.

Noble Energy (NE): Just recently broke above an ascending continuation triangle pattern.  The increasingly higher lows and constant highs within this pattern tell us that buyers are more aggressive than sellers, confirmed by a breakout through a resistance level to signal a continuation of the prior uptrend.

2-2

An ascending triangle, with its increasingly higher lows and constant highs, indicates that buyers are more aggressive than sellers. The pattern typically forms because a supply of shares is available at a certain price, represented by the upper flat line. When the supply depletes, the shares quickly break out from the top trend line and move higher.

The MACD (Moving Average Convergence/Divergence) indicator below the price chart has reversed from its neutral level and is showing upside momentum which confirms the bullish breakout.

 

To read the original Traders’ Insight, visit: 

https://www.interactivebrokers.com/en/?f=5599&vid=19034

RECENT POSTS