Archrock Inc. (AROC) is a provider of natural gas compression services to customers in the oil and gas industry. Archrock reported a second-quarter earnings and revenue beat on Monday and raised its quarterly dividend by more than 3% last week. The name is new to me, so let's get acquainted with Archrock's charts and indicators.
In this daily bar chart of AROC, below, I can see that prices made a low back in September. AROC has rallied strongly and has nearly doubled from their nadir. Prices trade above both the rising 50-day moving average line and above the slower-to-react 200-day moving average line. The trading volume has been more active since February and suggests greater investor interest in the stock. The On-Balance-Volume (OBV) line declined for a few months but looks like it has turned higher again in July. The Moving Average Convergence Divergence (MACD) oscillator turned bullish in June.
In this weekly Japanese candlestick chart of AROC, below, I can see the past three years of price action. For much of that time the price of AROC moved sideways. The recent price gains for AROC have refreshed the longer-term advance. Prices are trading above the rising 40-week moving average line. Prices are making new 52-week highs. The candles do not show me a top reversal pattern and no upper shadows. The weekly OBV line is bullish. The MACD oscillator is also bullish and just turned higher with a fresh outright buy signal.
In this daily Point and Figure chart of AROC, below, I see a potential upside price target in the $21 area.
In this weekly Point and Figure chart of AROC, below, I used a five-box reversal filter. Here the software projects an upside price target in the $33 area.
Bottom line strategy: Traders could go long AROC in the $11.50 to $11.00 area if available. Risk to $10. My price targets are $21 and then $33 for now.
