• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

Concho Resources Upgraded to a Buy, but Needs More Base Building

Concho Resources was upgraded to a buy by TheStreet.com's quantitative service on Wednesday.
By BRUCE KAMICH
Feb 20, 2019 | 02:07 PM EST
Stocks quotes in this article: CXO

Concho Resources Inc. (CXO) was upgraded to a buy by theStreet.com's quantitative service today. Prices have improved from their late December nadir but from a technical perspective I think CXO needs more base building. Let's drill down into the charts and indicators.

In this daily bar chart of CXO, below, we can see that prices have yet to establish a new uptrend - a pattern of higher lows and higher highs. The volume pattern from the December low has yet to display increasing volume nor a strongly rising On-Balance-Volume (OBV) line. Both the shorter 50-day moving average line and the slower-to-react 200-day average line are pointed down. The Moving Average Convergence Divergence (MACD) oscillator has been hugging the zero line in recent weeks and thus not giving us a sign of trend strength.

In this weekly bar chart of CXO, below, we can see that prices are below the declining 40-week moving average line. The weekly OBV line is neutral and the MACD oscillator is below the zero line and just gave us a cover shorts buy signal.

In this Point and Figure chart of CXO, below, we can see that prices are in a downtrend, however, the software is projecting an upside price target near $148.

Bottom line strategy: CXO has made a low but not a bottom. Quantitative buy recommendations and fundamental buy recommendations are helpful, but I want to see investors vote by buying shares and sending the stock price higher.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing | Technical Analysis | Basic Materials |

More from Investing

In This Market, If You Can't Beat 'Em, Join 'Em

James "Rev Shark" DePorre
Jan 26, 2021 5:50 PM EST

There is no way to know how long this theme of strong small-cap speculation and short squeezes will continue, but I have no interest in fighting it.

Is Live Ventures Taking Notes From GameStop?

Bruce Kamich
Jan 26, 2021 3:09 PM EST

Let's see what we might glean from the charts.

Ranpak Holdings May Double or More in 2021

Bruce Kamich
Jan 26, 2021 2:35 PM EST

Here's what aggressive traders should look for.

Jim Cramer: Ready, Set, Go!

Jim Cramer
Jan 26, 2021 1:30 PM EST

Here's why you should wait for a dip -- not the vaccine glut -- to start buying.

Let's Dare to Take Another Look at GameStop

Bruce Kamich
Jan 26, 2021 1:25 PM EST

Here's what we found in the latest GME charts.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 09:35 AM EST CHRIS VERSACE

    Another Big Winner for Stocks Under $10

    We're ringing the register Tuesday morning.
  • 08:05 AM EST GARY BERMAN

    Tuesday Morning Fibocall for 1/26/2021

    SPX (Long-Term View) The 1/21/21 NEW high @ 3861...
  • 09:52 AM EST GARY BERMAN

    INDU/DIA 20 DMA

    Fibocall: The DIA has the 20 DMA @ 307.81 and w...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login