Shares of Hess ( HES) were increased Thursday to an "Outperform" (buy) rating at Wolfe. I was positive on HES in my October 27 review, writing "In the short-run shares of HES could trade sideways or even dip towards $140. Traders should use this movement to go long or increase their existing long position. The $193 area is our target and $126 is our risk point."
HES dipped to the $130 area in December but stayed above our stop loss level. Let's check the charts again.
In this updated daily bar chart of HES, below, I see a positive setup. Prices dipped in December and trading volume diminished which is a good sign telling us that traders were not heavy sellers.
The daily On-Balance-Volume (OBV) line made a higher low in December versus September and is only "inches" from a new high. The Moving Average Convergence Divergence (MACD) oscillator just moved back above the zero line.
In this weekly Japanese candlestick chart of HES, below, I see a longer-term uptrend playing out for shares. Prices are above the rising 40-week moving average line. In hindsight, tests of the 40-week line have been buying opportunities.
The weekly OBV line is generally positive and close to making a new high to confirm the price gains. The MACD oscillator is above the zero line and poised for an upturn or a downturn with the two moving averages on top of each other.
In this daily Point and Figure chart of HES, below, an upside price target of $177 is being projected. A trade at $149.43 should refresh the uptrend.
In this weekly Point and Figure chart of HES, below, a price target of $175 is indicated. With this "even dollar" scaling a trade at $150 is bullish.
Bottom line strategy: Traders who are long HES should continue to hold those positions. Risk to $127 now. The $175 area is our price objective.
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