Vanguard Natural Resources (VNR) has given back nearly all of its 2009 to 2011 rally, but it has yet to display any recent bottoming action on the charts.
The chart of VNR is not encouraging for the bulls. Prices have trended sideways the past three months after being cut to almost $5 from $15 in less than two months. That sort of markdown has sometimes attracted bargain hunters, but not in this case with the On-Balance-Volume (OBV) line remaining flat. The 50-day moving average is still in a downward trend and our momentum study is not foreshadowing a rally.
One of the strengths of Japanese candlestick charts, see above, is that they can show reversals quickly, sometimes in one or two sessions. Unfortunately, we have yet to find a reversal pattern on VNR.