A sell-side firm has raised their price target on Diamondback Energy (FANG) to $196 and kept their "overweight" rating on the independent oil and natural gas company.
In our May 13 review of FANG we said that "Energy prices are likely to remain strong and could even spike higher if the U.S. dollar turned lower but the charts of FANG suggest a pause or correction in the short-term." With hindsight we can see that the share price of FANG stalled for a short time before rallying to new highs in June.
Energy prices have indeed remained strong despite a strong U.S. dollar, so let's check out the charts again.
In the daily bar chart of FANG, below, we can see that the shares made new 52-week highs in June. In recent days the price of FANG has dipped slightly but remains well above the rising 50-day moving average line and the rising 200-day moving average line.
The On-Balance-Volume (OBV) moved up to a new high to confirm the new price highs. The Moving Average Convergence Divergence (MACD) oscillator is pointed up but has narrowed slightly in recent days.