Rounding out our survey of energy names today we looked at Action Alerts PLUS holding EOG Resources Inc. (EOG).
EOG, similar to other energy names, peaked last year but it had a rally in March and April that lifted prices back to their highs and temporarily above the declining 200-day moving average.
Prices made a small double bottom in August and September followed by a sharp October rally that saw a retest of the 200-day average again.
In this longer-term chart of EOG we can see how the 40-week, or 200-day moving average has tracked prices nicely both on the upside and the downside. Also, we can point out that the recent dips to around $70 for EOG are the top end of a resistance zone from early 2013.
Last, we see a bullish divergence between the price lows in late 2014 and this summer and the higher lows from the momentum study in the lower panel.
We would like to buy EOG closer to $80.