Independent oil and natural gas company Diamondback Energy (FANG) has been a good trade or investment for the past two years and the company posted an earnings and revenue beat last week. Let's review the charts and indicators.
In the daily bar chart of FANG, below, we can see a mixed picture. The shares made a low in July and a higher low in September before climbing to a new 52-week high in November. The slopes of the 50-day moving average line and the slower-to-react 200-day line are positive and tell us that the major trend is up.
The trading volume has been stable the past four months. A pattern of increasing volume would have been a more bullish pattern. The On-Balance-Volume (OBV) line has been very strong and confirms the price gains seen the past year. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but it has narrowed and could cross to the downside for a take profit sell signal.