Diamondback Energy (FANG) is ready to report its latest quarterly numbers after the close of trading Monday. Let's check out the charts and indicators.
In the daily bar chart of FANG, below, we can see that the shares made a strong rally from November, but corrected lower in July and August. FANG has since rallied to new highs in October. It is trading above the rising 50-day moving average line and above the rising 200-day line.
The On-Balance-Volume (OBV) line turned higher in early September to confirm and support the price advance. The trend-following Moving Average Convergence Divergence (MACD) oscillator is well above the zero line but crossed to the downside for a take profit sell signal.
In the weekly Japanese candlestick chart of FANG, below, we can see how prices tested and held the rising 40-week moving average line in August and September.
The weekly OBV line is very supportive of the price action and the MACD oscillator is bullish in this time frame.
In this daily Point and Figure chart of FANG, below, we can see that prices have reached and exceeded a $104 price target.
In this weekly Point and Figure chart of FANG, below, we can see a longer-term price target of $194.
Bottom-line strategy: I have no special knowledge of what FANG is going to report but the charts are bullish, in my opinion. Aggressive traders could go long FANG ahead of earnings risking to $100 for now. The $194 area is our price target.
