NEW BULLISH Plays
Range Resources Corp - RRC - close 36.94 change +1.56 stop 34.40
Target(s): 39.25, 40.50, 41.75
Key Support/Resistance Areas: 42.00, 40.75, 39.50, 37.38, 34.70
Time Frame: 1 to 3 weeks
Range Resources Corporation is an independent natural gas company, engaged in the exploration, development and acquisition of primarily natural gas properties, mostly in the Southwestern and Appalachian regions of the United States. During the year ended December 31, 2009, its proved reserves consisted of 3.1 trillion cubic feet equivalent (Tcfe) of proved reserves, 84% natural gas, 55% proved developed, 79% operated and a reserve life of 18.6 years.
Why We Like it:
We are sticking with an energy play in a natural gas driller tonight. RRC surged higher and closed above its 50-day SMA today on heavy volume, while call activity was huge in the October and November strikes. RRC is forming an ascending triangle on its daily chart and I suggest readers play for a breakout. Let's use a trigger of $37.48 to initiate long positions in the stock. This is above the high on 9/10. More nimble traders may want to try to time a pullback to the $36.00. If triggered, our first two profit targets are +5% and +8% higher.
Suggested Position: Long RRC stock if it trades up to $37.48.
Options Traders: Buy November $39.00 CALL, current ask $1.55
Entry on September XX
Earnings 10/18/2010 (unconfirmed)
Average Daily Volume: 3.2 million
Listed on September 25, 2010