Magellan Midstream Partners (MMP) was reviewed in the middle of November, when we said, "MMP looks like it is in 'limbo land' -- not giving us bearish signals and not yet giving us bullish signals. Despite this in-between purgatory, I favor an upside breakout. I would go long on a close above $70, risking a close below $66."
With a couple more weeks of trading history, we can see that MMP -- which Jim Cramer holds in his Action Alerts PLUS charitable portfolio -- has found buying support around $64 and prices have rebounded recently. Let's check out all the latest charts.
In this daily bar chart of MMP, below, we can see that prices have rallied to test the declining 50-day moving average line. If prices close above the 50-day line we then can look to the November high of $70 to overcome and the declining 200-day line above $71. The daily On-Balance-Volume (OBV) line is showing some bottoming action and the Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside for a cover shorts buy signal.
In this weekly bar chart of MMP, below, we can see that prices are still below the declining 40-week moving average line, but this is a lagging indicator. The weekly OBV line looks like a small double bottom and the weekly MACD oscillator is close to a weekly cover shorts buy signal.
In this Point and Figure chart of MMP, below, we can see a small double top breakout at $67.41 and an upside price target of $75.62.
Bottom line -- MMP is not the most bullish looking chart, but it is showing more promise. The $64 level has held a number of times since August but we still need to break above the November high and better still the October highs.
