Back on March 18, when looking at oil & gas company APA Corp. (APA) we recommended that, "APA - and crude oil prices - could trade sideways in the near term. Traders could use this sideways movement to build a long position in APA. Risk to $33. The $62 area is our initial price target." The shares have reached $50 so a fresh update is in order.
In the daily bar chart of APA, below, we can see that the shares traded sideways in March and April allowing traders plenty of opportunity to go long below $40. Prices resumed the uptrend in May and are trading above the rising 50-day moving average line again. The slope of the 200-day line is positive and prices are not extended above it.
The On-Balance-Volume (OBV) line is rising and confirms the price gains and tells us that buyers of APA remain more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line for much of the past year and is in a bullish alignment above the line now.