Our analysis of Cimarex Energy (XEC) was updated back in February, where I wrote that, "With mixed technical signals I am willing to give XEC the benefit of the doubt, but if prices push more than halfway through the support area or below $95, the bears will be gaining the upper hand." The patterns have shifted over the past three months so let's check the charts again.
In this daily bar chart of XEC, below, we can see that prices have been trading recently between the slightly rising 50-day moving average line and the flat 200-day line. The daily On-Balance-Volume (OBV) line recently inched up to a slight new high telling me that buyers of XEC have become more aggressive and this may be enough to tip the scales in favor of the bulls. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in positive territory and the next move up in price should generate a bullish crossing of the two averages.
In this weekly bar chart of XEC, below, we can see that prices are below the flat 40-week moving average line. The weekly OBV line has improved the past six weeks or so. The weekly MACD oscillator is crossing to the upside for a cover shorts buy signal on this longer time frame.
In this Point and Figure chart of XEC, below, we can see that at trade at $104 will be a triple top breakout and open the way for a possible longer-term price objective of $126.00.
Bottom line: It looks like buyers of XEC have become more aggressive and an upside breakout could be seen soon. Aggressive traders could go long above $104 risking to $96 and looking for gains to the $125 area.