Kinder Morgan (KMI) was reviewed a few weeks ago, and at that time we said, "KMI still needs to prove itself on the upside, but our volume indicators and momentum study are giving us some positive clues." With a little more market data to mull over we can see that KMI is trying to turn to the upside. Let's reexamine the charts and indicators.
In this updated daily bar chart of KMI, below, we can see that prices stabilized in the past two weeks or so. Prices are still below the declining moving average lines but the recent strong volume (over 25 million shares) is a good sign. The daily On-Balance-Volume (OBV) line is showing some early improvement and the trend-following Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside for a cover shorts buy signal.
In this updated weekly bar chart, below, it is hard to see much improvement but the weekly OBV line has inched up a little and the MACD oscillator is narrowing.
In this Point and Figure chart, below, we can see a small double top breakout and a $17.95 price target.
Bottom line -- it looks like we have a "trade-able low" for KMI. Traders could probe the long side risking below $16.50 or a new low for the move down.