Deepwater exploration and production company Kosmos Energy (KOS) has been in an uptrend since early 2020. The shares are up eight-fold from their nadir but the advance may not be over.
Let's check the charts and indicators.
In the daily bar chart of KOS, below, I can see a sideways trading pattern going back to April. Rallies to the $8.50 area have failed. Dips to the $5.00 area have been bought. The shares are currently trading above the rising 50-day moving average line and above the positively sloped 200-day line.
Trading volume has been neutral for several months now. The daily On-Balance-Volume (OBV) line has been steady. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and looks poised to turn higher.
In the weekly Japanese candlestick chart of KOS, below, I can see a longer-term rise in price to an upper level consolidation pattern. The shares are trading above the rising 40-week moving average line.
The weekly OBV line has a positive trend and the MACD oscillator is bullish.
In this daily Point and Figure chart of KOS, below, I can see an upside price target in the $14 area. A trade at $9.50 should refresh the uptrend.
In this weekly Point and Figure chart of KOS, below, I used a five box reversal filter. Here the software shows a longer-term price target in the $23 area.
Bottom-line strategy: Traders should be patient and wait to go long KOS on strength above $9.50. Risk to $7.50. The $23 area is our longer-term price objective after $14.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.