Cimarex Energy (XEC) has been trending sideways to higher since August. With our technical indicators in a bullish alignment on the daily and weekly charts it may only be a matter of time before prices break their 2014 highs. Let's check the charts.
In this one-year daily chart of XEC, below, we can see prices above the rising 50-day simple moving average line. Prices are also above the rising 200-day moving average line. The On-Balance-Volume (OBV) line has been steady in the past two months after a long period of increasing.
The Moving Average Convergence Divergence (MACD) oscillator, above, has been above the zero line since early December. Considering the price action with the indicators gives me the impression that we are seeing a high level consolidation.
In this three-year weekly chart of XEC, above, we can see that prices are above the rising 40-week moving average line. The weekly OBV line is positive and confirms the price advance. The weekly MACD oscillator has been above the zero line since May and is poised for a fresh buy signal.
This long-term Point and Figure chart of XEC, above, shows a very wide base pattern that could support a longer-term move to $199, according to www.stockcharts.com.
Bottom line: XEC is likely to trade sideways to higher from here. Long-term investors should risk below $120 if possible and shorter-term traders should risk below $130.