Apache (APA) has been building a base between $35 and $50. A measured move would suggest a retest of the highs at $66 over the next year. Apache also pays a dividend.
Looking through the technical indicators, the SCTR is showing the highest reading since 2016 and has just moved above $75. The relative strength line looks to make new 52 week highs. The PPO just turned up a few weeks ago with the first positive cross above zero in months.
The outlook for both oil and gas is also accelerating and the stock looks to be one of the strongest in the sector.
Greg Schnell, CMT, MFTA
About the author:Greg Schnell, CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis.
Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter.
He is also the author of Stock Charts for Dummies (Wiley, 2018).