We reviewed Energy Transfer Partners L.P. (ETP) two weeks ago, and we said, "I do not typically recommend buying in a downtrend, but the bullish divergence on ETP and the possibility of a higher low being made has pushed me to recommend that aggressive traders could probe the long side of ETP here, risking a close below $16. Add to longs on a rally above $17.59."
Two weeks later, and we can see that how this trade worked out for you depends on how low a stop close only order you entered. Let's review the charts and indicators again to see if we might want rebuy ETP or sit things out for a while.
In this daily bar chart of ETP, above, we can see that prices made a lower low recently -- and not a higher low, so the trend is still down. Prices are still below the declining 50-day moving average line as well as the declining 200-day moving average line.
The daily On-Balance-Volume (OBV) line has made an equal low in October and November, but a higher low and stronger signs of aggressive buying would be better. We can still see a bullish divergence between the higher momentum lows in August, October and November versus the lower lows in price. This divergence may still produce a rally.
In this weekly candlestick chart of ETP, above, we can see that prices are below the declining 40-week moving average line. The candle pattern for this week could be a bullish "hammer" pattern, but it would still need confirmation this coming week ,with a weekly close above the opening on Monday. The weekly OBV line looks like it has made a low and the slow stochastic indicator in the bottom panel shows a divergence with lower lows in price since August, but the stochastic indicator improving from oversold readings.
In this Point and Figure chart of ETP, above, we can see that prices are still in a longer-term downtrend, but there is an upside price target of $19.77.
Bottom line: I would like to see some sort of retest of the low made last week. Assuming that it is made and holds, I would be more friendly to the long side of ETP looking for a rally to the $19-$20 area.