• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Energy

Some 'Throw-in-the-Towel' Activity Happened in Range Resources Corp.

A bullish divergence suggests better price action is ahead for RRC.
By BRUCE KAMICH
Jan 05, 2018 | 08:49 AM EST
Stocks quotes in this article: RRC

The charts and indicators of Range Resources Corp. (RRC) have not been reviewed since early 2017, when we said that "RRC could continue to work lower to retest the $25 area. It will take a close above $37 now to break the eight-month downtrend line."

With 10 months of hindsight, we can see that RRC not only retested the $25 area it continued lower to around $16 this past month. Has RRC finally reached a level where investors may be returning to the long side? Let's check some updated charts and indicators.

In this daily bar chart of RRC, below, we can see that prices have been cut in half in the past year. In early August, we can see a change in volume as RRC declined quickly and sharply from $22 to short of $16. The trading volume spiked up to around 25 million shares, suggesting that some "throw in the towel" activity took place.

Prices stabilized in the second part of August and even firmed in September. It took three months for prices to retest the August/September lows, suggesting to me that there may have been some subtle scale down buying.

Since September, RRC has been crossing above and below the still-declining 50-day moving average line. While this price action can still be considered bearish, it is better than the February to July action, when rallies to the underside of the 50-day line failed.

Prices are still making lower lows and lower highs but that could change soon. The daily On-Balance-Volume (OBV) line has not made a new low since August -- another subtle positive.

In the lower panel of this chart is the 12-day momentum study. Downside momentum has improved or lessened since August, even though prices made a lower low in December. This is a bullish divergence and could be foreshadowing better price action ahead.

In this weekly bar chart of RRC, below, we can see that prices have really tumbled since early 2015. RRC is below the declining 40-week moving average line. The level of volume since August looks heavier than it was in the prior summer.

The weekly OBV line has been steady since August, suggesting at least a balance between bulls and bears. The trend-following Moving Average Convergence Divergence (MACD) oscillator crossed to a cover shorts buy signal in September. This indicator is still not in positive territory (above the zero line), but it is improving.

In this Point and Figure chart of RRC, below, we can see that a trade up at $18.49 will be a new high on this chart and could open the way for a further rally to the $23.16 area.

Bottom line: After a serious decline the past several years it looks like RRC is attracting interest from investors. Investors could probe the long side here risking a close below $15. Traders should be patient and wait for a close above $21 or the October peak before joining the long side.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing | U.S. Equity | Energy | Markets | How-to | Stocks

More from Energy

As Pioneer Natural Resources Blazes a Trail Higher, We Have New Price Targets

Bruce Kamich
May 25, 2022 2:50 PM EDT

Here's our updated bullish strategy on PXD.

Magellan Midstream Partners Is Close to Discovering a Major Upside Breakout

Bruce Kamich
May 25, 2022 8:53 AM EDT

Here's how traders can play it.

An ETF for When You're Over ESG

Mark Abssy
May 24, 2022 4:05 PM EDT

Constrained Capital ESG Orphans ETF bets that ESG trends have put undeserved pressure on fossil fuel, nuclear energy, weapons, alcohol, tobacco, and gaming companies.

Bettin' a Buck on Devon

Mark Sebastian
May 24, 2022 1:39 PM EDT

Here's where I see Devon Energy going and how to play it.

3 Oil & Gas Royalty Trusts For $100 Oil

Bob Ciura
May 20, 2022 2:05 PM EDT

For investors looking to take advantage of lofty oil and gas prices, we like these investment vehicles.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 11:33 AM EDT PETER TCHIR

    Thoughts Ahead of the Fed Minutes

    Recent economic and earnings issues are convincing...
  • 02:24 PM EDT PAUL PRICE

    An Interesting Chart

    I'm betting heavily that stocks will be way up aga...
  • 10:10 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    "Market Timing for Dummies"
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login