APA Corp. (APA) is scheduled to release second-quarter results after the close of trading here on Wednesday. Let's check out the charts and technical indicators of the oil and gas producer for any clues we can glean.
In this daily bar chart of APA, below, we can see that prices corrected in June and early July and then tested the rising 200-day moving average line. The 200-day line was broken a number of times but it did not precipitate a new decline and now prices are back above the line. The daily On-Balance-Volume (OBV) line has been relatively steady the past five months. The Moving Average Convergence Divergence (MACD) oscillator has turned upward for a cover shorts buy signal but is far enough below the zero line to not trigger a new buy signal right now.
In this weekly Japanese candlestick chart of APA, below, we can see that prices found support (buying interest) around $30 and are back above the rising 40-week moving average line. Prices have improved but I fail to find a clear bottom reversal pattern in June/July. The weekly OBV line shows a long rise with only a dip in June. The MACD oscillator is still above the zero line but it has been in a take profits sell mode for several weeks.
In this daily Point and Figure chart of APA, below, we can see a potential upside price target in the $46 area.
In this weekly Point and Figure chart of APA, below, we can see a bearish price target of just $10 or so. A big difference compared to the daily chart.
Bottom line strategy: I have no knowledge of what APA is going to report this evening, but the charts are mixed. I would not be surprised if APA continued to do more testing of the $30 area in the days ahead.
