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Forest Oil - FST - close: 42.00 chg: +1.50 stop: 38.49

Company Description:
Forest Oil Corporation is engaged in the acquisition, exploration, development, and production of natural gas and liquids in North America and selected international locations. Forest's principal reserves and producing properties are located in the United States in the Gulf of Mexico, Texas, Louisiana, Oklahoma, Utah, Wyoming and Alaska, and in Canada. (source: company press release)

Why We Like It:
Oil and natural gas stocks are on the rise again. A $100 barrel price forecast for crude from Goldman Sachs last week got the rally going again. Now oil, oil services and natural gas indices are all breaking out from what looks like a bull-flag pattern. Shares of FST are following suit. FST added 3.7 percent on Friday to breakout from its own bull-flag pattern. Short-term technical oscillators like the RSI and stochastics have turned bullish. Plus, the MACD indicator is nearing a new buy signal. The P&F chart points to a $48.00 target. If FST is beginning the next leg higher then $48 looks like a good short-term target to us. Our time frame is five to six weeks. If FST pulls back we would buy a bounce from the $40.00 level.

Picked on April 03 at $42.00
Change since picked: + 0.00
Earnings Date 05/09/05 (unconfirmed)
Average Daily Volume: 1.0 million

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