Noble Energy Inc. (NBL) has made an impressive base pattern the past three years and the time has come for an upside breakout. Prices could trade sideways a little longer but the charts and indicators look strong enough to propel NBL over its 2016 peaks.
In this daily bar chart of NBL, below, we can see an uptrend the past 12 months with some pauses and corrections along the way. Prices are currently above the rising 50-day moving average line and the bullish 200-day average. The daily On-Balance-Volume (OBV) line shows a rise from August and confirms the price advance. The trend-following Moving Average Convergence Divergence (MACD) oscillator is turning up to a new buy signal above the zero line.
In this weekly bar chart of NBL, below, we went back to 2013 to show the size of the base pattern. The height of the base pattern projected upward from a $41 breakout would yield a price target around $60. Prices are above the rising 40-week moving average line. The weekly OBV is constructive and the weekly MACD oscillator is above the zero line but has narrowed. A take profits crossover may or may not happen - it all depends on the price action in the next few weeks.
In this Point and Figure chart of NBL, below, we can see an upside price target of $44.79 being projected. If this target is reached we will have broken above the 2016 highs. Longer-term our $60 target would come next.
Bottom line: Risk a close below $33 as you probe the long side here and on strength above $38 and $41. Our targets are $44-$45 and then $60.
