Option Investor
New Plays
HAVING TROUBLE PRINTING?
Printer friendly version
New Plays
Long Plays
Short Plays
CHK None
NBL  

New Long Plays

Chesapeake Energy - CHK - cls: 33.98 chg: +1.03 stop: 31.99

Company Description:
Chesapeake Energy Corporation is the third largest independent producer of natural gas in the U.S. Headquartered in Oklahoma City, the company's operations are focused on exploratory and developmental drilling and corporate and property acquisitions in the Mid-Continent, Permian Basin, South Texas, Texas Gulf Coast, Barnett Shale, Ark-La-Tex and Appalachian Basin regions of the United States. (source: company press release or website)

Why We Like It:
Following the strength in crude oil and the energy sectors on Wednesday we are going to increase our exposure to the group. We do have several oil-related stocks in the newsletter and we would suggest limiting your exposure to only a select few that you find favorable instead of trying to play them all. We like CHK thanks to today's bullish breakout from a four-week consolidation pattern. The move has turned the technical picture bullish and produced a new triple-top breakout buy signal on the P&F chart. The P&F chart now points to a $47 target. The rally in energy stocks was pretty strong today. A pull back tomorrow would be a preferred entry point but we are willing to chase CHK here. It's up to you, the individual trader, if you want to wait for a dip or not. Broken resistance in the $33.15-33.20 region should now act as support. Our target is the $38.00-40.00 range.

Picked on November 29 at $33.98
Change since picked: + 0.00
Earnings Date 01/25/07 (unconfirmed)
Average Daily Volume: 7.5 million

---

Noble Energy - NBL - close: 53.11 change: +2.46 stop: 48.99

Company Description:
Noble Energy is one of the nation's leading independent energy companies and operates throughout major basins in the United States including Colorado's Wattenberg Field, the Mid-continent region of western Oklahoma and the Texas Panhandle, the San Juan Basin in New Mexico, the Gulf Coast and the Gulf of Mexico. In addition, Noble Energy operates internationally in Argentina, China, Ecuador, the Mediterranean Sea, the North Sea, West Africa and Suriname. Noble Energy markets natural gas and crude oil through its subsidiary, Noble Energy Marketing, Inc. (source: company press release or website)

Why We Like It:
The rally in oil and energy stocks fueled a strong move in NBL today. Shares rose 4.8% on above average volume to hit new all-time highs. Technicals have turned bullish and we like the breakout over resistance in the $51.00-51.65 region. Traders can choose to go long here at current levels or hope for a dip. We would expect the $50.00-51.00 region to act as new support. The P&F chart looks very bullish with a $76 target. Our target is the $57.50-60.00 range.

Picked on November 29 at $53.11
Change since picked: + 0.00
Earnings Date 01/31/07 (unconfirmed)
Average Daily Volume: 1.3 million
 

New Short Plays

None today.
 

Premier Investor New Play Archives