Hess (HES) has already made a significant advance from its late August nadir but further gains and a major breakout could develop in the near-term. Let's check out the charts and indicators to plot a bullish strategy.
In this daily bar chart of HES, below, we can see a rally with periodic corrections. A stronger leg up began in February and corrections have been shorter and shallower. HES is above the rising 50-day moving average line and the rising 200-day line. A bullish golden cross of these average can be seen in December. The volume pattern is hard to decipher but the daily On-Balance-Volume (OBV) line has been rising the past twelve months telling us that buyers of HES have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and could soon turn up for a fresh outright go long signal.
In this weekly bar chart of HES, below, we can see a three-year base pattern with a "neckline" across $65. A weekly close above $65 or $66 should start a significant move higher. HES is above the rising 40-week moving average line. The weekly OBV line has been bullish since August. The weekly MACD oscillator is bullish but has narrowed slightly.
In this Point and Figure chart of HES, below, we can see a longer-term price target of $113 being projected. A trade up at $66 will be positive.
Bottom line: Traders could go long HES here and above $66. Risk a close below $58 for now. Our target is the $100-$113 area.
