Carrizo Oil & Gas (CRZO) has been in a sharp decline since early December. Prices have fallen from around $42 to $24, and it is not because of dyslexia. The trend is still down but the pace of the decline has slowed from March to May and this might foreshadow a price recovery.
Prices typically will shift from down to sideways; 180-degree turns are hard to anticipate. Let's check the charts and indicators for further clues.
In this daily bar chart of CRZO, above, we can see prices held in a rectangle-looking consolidation pattern from May to November, then turned south. The 50-day and 200-day moving average lines have bearish slopes and prices are not extended far below these lines. The On-Balance-Volume (OBV) line has been in a downtrend since early October and the downtrend may be slowing the past month. In the lower panel is the 12-day momentum study, which shows higher lows in March and April/May as prices made lower lows. This is a small bullish divergence but it could be just enough to generate some upside movement.
In this weekly chart, we can see prices are back near the early 2016 lows and a $25-$20 support area. It would be good if prices hold around $25 and not push deeper into this support zone. The weekly OBV line is bearish, as is the weekly MACD oscillator.
In this Point and Figure chart, above, it is all downhill. Prices are at least in an up column of X's and we have gotten near a downside price target around $22. I would take it as a positive sign if we stop short of a price target.
Bottom line: With a bullish divergence and being near a price target, I would not press the short side of CRZO. If prices can close back above $27, we should get more of a lift.