Best Gains for Pioneer Natural Resources May Have Been Seen

 | Feb 15, 2018 | 2:45 PM EST
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Pioneer Natural Resources Co. (PXD) was starting to falter before the broad market selloff of this month. This could be a subtle sign that this stock will not show leadership for the rest of this quarter, but let's look at all the charts first.

In this daily bar chart of PXD, below, we can see a five-month rally from late August. Prices rally about 50% from their nadir but run into selling resistance above $185. The pace of volume does not really expand on the rally disappointing or worrying "traditional" chart watchers who like to see volume expand in the direction of the trend.

The On-Balance-Volume (OBV) line did go up from early August but it has stalled the past month or so. The trend-following Moving Average Convergence Divergence (MACD) oscillator narrowed through January and finally crossed to the downside for a take profits sell signal. The MACD oscillator continued lower this month breaking the zero line for an outright sell signal.

In this weekly bar chart of PXD, below, we can see that the rally in PXD stopped in the area of the previous top from late 2016/early 2017. The weekly OBV line stopped around its prior high as did the MACD oscillator. Prices are above the flat 40-week moving average line but that is the only positive I see right now.

In this Point and Figure chart of PXD, below, we can see a lot of price activity since January (look for the "1" and the "2" on the chart). The chart is interpreting this price action as bearish with a $142.82 downside price target.

Bottom line: While PXD is still in an uptrend from its August low, I am not sure it will resume that trend.

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