Range Resources ( RRC) is a leading U.S. independent natural gas and NGL producer.
A sell-side firm has raised their fundamental opinion of the stock to "buy" from "hold." However, the charts are in the process of making a short-term bottom and that's more important, in my opinion, in this current market environment.
Let's look at those charts now.
In the daily bar chart of RRC, below, we can see that prices have made three key tests of the rising 200-day moving average line. One in August. Another in January and the latest in the end of June and early July. Prices are below the declining 50-day moving average line.
The On-Balance-Volume (OBV) line has been steady since early March. The Moving Average Convergence Divergence (MACD) oscillator is poised for a cover shorts buy signal.
In the weekly Japanese candlestick chart of RRC, below, we can see that the shares made a large saucer-like bottom pattern. Notice how the rising 40-week moving average line has acted as support the past two years.
The weekly OBV line was strong for the past three but has turned neutral the past three months. The MACD oscillator has crossed to the downside for a take profit sell signal.
In this daily Point and Figure chart of RRC, below, we can see a potential upside price target in the $35 area.
In this weekly Point and Figure chart of RRC, below, we can see that the software is "reading" the chart and suggests a downside price target in the $11 area. A trade at $29 could improve the picture.
Bottom-line strategy: Traders could probe the long side of RRC at current levels risking to $22. Add to longs above $29. The $35 area is our first price target.
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Let's look at what many observers failed to notice about oil, and what could happen when the oil exporting nations -- including Russia -- meet on June 4.
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