ONEOK (OKE) looks like it will consolidate or correct its recent gains before renewed strength as our short-term indicators have not confirmed the advance in December.
In this daily chart of OKE, above, we can see that prices have been in an uptrend all year with a rising 50-day moving average and a rising 200-day average line. The On-Balance-Volume (OBV) line has moved up with the price action for much of the past twelve months but as prices rose in December it failed to push up to a new high. The trend-following Moving Average Convergence Divergence (MACD) oscillator crossed to a liquidated longs or take profits sell signal in mid-December. A pullback or retracement to key support around $50 on OKE would not be an unrealistic forecast for the next few weeks.
In this weekly chart of OKE, above, we can see that prices are above the rising 40-week moving average line. The weekly OBV line has moved up with the price action this year and tells us that buyers have been aggressive and probably accumulated a large position. The weekly MACD oscillator has been above the zero line since late April and just crossed to a new go long signal.
Bottom line: OKE could pullback towards key support around $50. If prices successfully test this area we are likely to recommend a long position.