We were positive on Cimerex Energy (XEC) two weeks ago, noting, "It looks like XEC has started a new leg higher. Traders should approach from the long side, risking a close below $110. On the upside, a rally into the $135-$140 area is possible." XEC has pulled back recently to test the rising 50-day moving average line, but our overall bullish stance is still intact as the charts below will bear out.
In this daily bar chart of XEC, below, we can see that prices are holding above the rising 50-day average and are above the still declining 200-day line. The daily On-Balance-Volume (OBV) line shows only a minor dip this month in its rally from August. The Moving Average Convergence Divergence (MACD) oscillator is in a take profits mode on the daily chart but not on the weekly chart.
In this weekly bar chart of XEC, below, we can see that prices are above the still declining 40-week moving average line. The weekly OBV line is rising and bullish as is the weekly MACD oscillator which recently gave an outright go long signal as it crossed above the zero line.
In this Point and Figure chart, below, we can see that prices are in a down column (O's) but there has not been enough price weakness to upset the base pattern.
Bottom line -- XEC could trade sideways from here or just continue the upside from the July low. A close below $110 would cause me to rethink a bullish position on XEC.