We looked at Pioneer Natural Resources (PXD) back on Oct. 25 where we wrote that, "Traders could go long PXD at current levels risking to $177. On the upside $215 and then $314 are our targets." Traders using my stop recommendation of $177 should be flat but the charts are still bullish.
Let's drill down on the charts again.
In the daily bar chart of PXD, below, we can see that the shares weakened in November to hit our suggested stop of $177. Prices weakened still further in December to approach the rising 200-day moving average line. In hindsight, waiting for this dip towards the 200-day line would have been a better time and location to go long PXD. Prices have recently rallied back above the 50-day line and look ready to resume the advance.
The On-Balance-Volume (OBV) line shows weakness from early October but the line has started to improve again in recent days. The Moving Average Convergence Divergence (MACD) oscillator has just turned upwards for a cover shorts, buy signal and could be only a few days from crossing the zero line.