• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Energy

Cabot Oil & Gas Looks Ready to Lodge on the Long Side

The stock has spent enough time above $25 to make us more positive on the name.
By BRUCE KAMICH
Jul 31, 2017 | 09:36 AM EDT
Stocks quotes in this article: COG

We have not looked at Cabot Oil & Gas Co. (COG) since late February, and at the time we had a hard time deciding on where prices might travel.

"I feel like I need to be the Oracle of Delphi and give advice that could be taken as bullish or bearish," we wrote at the time. "If COG holds and does not trade down to $21 I can be modestly encouraged, but it will take strength above $25 to get me more excited about COG."

With 20/20 hindsight we can see that COG declined to around $21.50 in early June, stopping short of the $21 level and giving us some encouragement. This month COG has spent enough time above $25 to make me more positive on the stock.

In this updated bar chart of COG, above, we can see the price improvement in the stock since early June. An uptrend is in place as prices have made higher lows and higher highs. The slope of the 50-day moving average line has turned positive, while the 200-day moving average line has turned to flat from down.

The daily On-Balance-Volume (OBV) line is giving us positive signals as it bottomed in May and June and has worked higher in July, telling us that buyers of COG have become more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in late June for an outright go-long signal. A fresh go-long signal could develop in the next few days as the two averages of this oscillator are poised to cross to the upside.

In this updated weekly vertical bar chart of COG, above, we can see that the price of COG is above the now-rising 40-week moving average line. The weekly OBV line has been rising since March, which suggests a fair amount of accumulation. The weekly MACD oscillator turned up above the zero line in June for an outright buy signal on this time frame.

In this Point and Figure chart of COG, above, we can see a recent upside breakout at $25.93. This small double-top breakout yields a nearby price target of $26.72, but that may be a conservative objective.

Bottom line: COG looks strong enough now to recommend the long side. Traders could use a sell stop below $24.25. My upside price targets are $26.75, followed by the $28-$30 area.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing | U.S. Equity | Energy | How-to | Risk Management | Stocks

More from Energy

Don't Waste Energy Divining Energy's Future; Ride With LNG Shippers Instead

Jim Collins
Jan 21, 2021 10:30 AM EST

A hot market for liquefied natural gas makes companies that transport the fuel sensible plays at a time when oil is demonized.

Renewable Energy Group Is Set to Drive to New Highs

Bruce Kamich
Jan 21, 2021 10:08 AM EST

REGI is the nation's largest biodiesel maker.

At What Price Is Ballard Power Systems a Buy?

Bruce Kamich
Jan 15, 2021 3:09 PM EST

Let's check out the latest charts of BLDP.

Time to Nail Down Some Profits on Halliburton

Bruce Kamich
Jan 14, 2021 10:47 AM EST

Our latest technical analysis and trading strategy for the oil services stock.

A Rising Tide Is Going to Lift LNG Shippers in a Very Cold Winter

Jim Collins
Jan 14, 2021 10:30 AM EST

Also, my take on Jack Dorsey and Twitter, along with Facebook.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 11:01 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    I discuss price targets in my Saturday column.
  • 07:54 AM EST GARY BERMAN

    Friday Morning Fibocall for 1/22/2021

    SPX (Long-Term View) The 1/21/21 NEW high @ 3861...
  • 11:16 AM EST CHRIS VERSACE

    Worst Stocks to Buy for the Biden Presidency

    Biden's take on the minimum wage, likely moves on ...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login