Oneok, Inc. (OKE) got to the $70 area back in 2014 and then corrected down to around $20. OKE is back up to the $70 area again and ready for an upside breakout, in my opinion. Sound interesting? Read further.
In this daily bar chart of OKE, below, we can see that OKE broke out on the upside from a broad sideways trading range market in April. Prices stayed in a $50 to $58-ish range for about nine months before moving north. Prices closed above the rising 50-day moving average line in April and are still above it.
OKE tested the rising 200-day moving average line in February, March and early April before it began to lift higher.
The On-Balance-Volume (OBV) line has been in slow but steady uptrend the past 12 months.
The Moving Average Convergence Divergence (MACD) oscillator has been correcting since the middle of May but looks poised for a bullish crossover to the upside.
In this weekly bar chart of OKE, below, we went back five years to show the 2014 zenith around $70. Prices are above the rising 40-week moving average line.
The weekly OBV line has been strong and positive since early 2016.
The weekly MACD oscillator has been in a bullish configuration all calendar year.
This long-term weekly close only plots the weekly closes so the hi/low extremes are ignored and thus the last high of $70 in 2014.
That is not a big issue or concern as a $104 price target is still indicated.
Bottom line: Traders and investors could go long OKE in the $70-$68 area risking below $65. The $100-$105 area is my price target.
