We last discussed the charts and indicators of Kinder Morgan (KMI) on Veterans Day, concluding, "KMI might trade sideways around $20 a while longer, but the overall pattern points to a move to the upside at some point."
The time has come for that upside move.
This updated daily bar chart of KMI, below, shows that prices meandered sideways around $22 since our Nov. 11 updated. The stock has been testing the $23 level recently -- and it looks like an upside breakout can occur at any time. Prices are above the rising 50-day and 200-day moving averages.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero line and is poised to cross again for a fresh go-long signal. The On-Balance-Volume (OBV) line bottomed in November, and has worked higher, telling us that buyers of KMI have been more aggressive -- with heavier volume being traded on days when KMI has closed higher.
In this weekly chart of KMI, above, we can see that prices are above the rising, 40-week moving average line. Volume has been flat, but the On-Balance-Volume line is pointed upward. The weekly Moving Average Convergence Divergence (MACD) oscillator has been in a bullish configuration since late December.
This weekly Point and Figure chart, above, shows that a weekly trade at $24 is a clear upside breakout. The initial potential price target for KMI when it breaks out is the $34 area.