Cimarex Energy (XEC) has stabilized since the middle of March and now looks ready to try the upside again as the summer approaches. XEC has been trying to stay above the declining 50-day moving average line but is still below the flat 200-day moving average line.
The On-Balance-Volume (OBV) line stabilized in March and has been rising since early April. The Moving Average Convergence Divergence (MACD) oscillator gave cover shorts buy signals in March and could soon cross the zero line for an outright go long signal (see the first chart below).
The weekly chart of XEC, below, shows prices below the flat 40-week moving average line. The weekly OBV line has been slowly weakening the past three to four months, however, the MACD oscillator is narrowing toward a possible cover shorts buy signal.
Bottom line: Traders could go long XEC on strength above $125 and then risk a close below $115.