A fresh look at the indicators may keep us from being bearish.
In this updated daily bar chart of APA, above, we can see the price strength last week did not last as prices were unable to stay above the declining 50-day moving average line. Two technical developments suggest a low or bottom is at hand. First, the daily On-Balance-Volume (OBV) line has not made a new low this week as prices made a new low. This is a small divergence but it is still worth noting. More important is the four-month bullish divergence between the lower lows in price from March vs. the higher momentum lows. This divergence tells us the pace of the decline has slowed over the past several months. A decline slows because someone is buying.
In this weekly bar chart of APA, above, we have mixed signals. Prices are below the declining 40-week moving average line, which is bearish. The weekly OBV line has been neutral the past three months and the 12-week momentum study has been slowing.
Bottom line: It looks like investors are quietly buying weakness on APA. The third quarter should bring price improvement.