Northern Oil & Gas - NOG - close 14.40 change +0.25 stop 13.10
Northern Oil & Gas, Inc., is an independent energy company engaged in the acquisition, exploration, exploitation and development of oil and natural gas properties. It is focused on the activities primarily on projects based in the Rocky Mountain Region of the United States, specifically the Bakken and Three Forks/Sanish formations within the Williston Basin. As of March 1, 2010, the Company owned working interests in 188 successful discoveries, consisting of 185 targeting the Bakken/Three Forks formation and three targeting a Red River structure. As of December 31, 2009, the Company completed drilling on approximately 10% of the Bakken prospective acreage inventory assuming 640-acre spacing units. As of December 31, 2009, the Companyâ€™s principal assets included approximately 104,000 net acres located in the Williston Basin region of the northern United States and approximately 10,000 net acres located in Yates County, New York.
Key Support/Resistance Areas: 15.00, 13.60, 13.15
Time Frame: 1 to 2 weeks
Why We Like It:
NOG has broken a recent downtrend line and looks like it is trying to form a higher low that would be confirmed if the stock trades above its recent highs. The stock also has solid support at $13.60 which is a prior resistance area from early 2010. NOG has also taken back its 20-day SMA and I believe a trip up to 50-day SMA will follow in short order. I would like to see a retracement of some the gains late last week and use a trigger to enter bullish positions if NOG trades down near $13.80 which is just above Friday's low. I expect NOG to at least retest its June 3rd high which is above our target of $14.95 and below the 50-day SMA. If the trade plays out how we expect the gain will be +8%. We are risking 75 cents to make $1.15. NOTE: I consider this a volatile stock and industry so please use proper position size to limit risk.
Suggested Position: Long NOG stock if it trades down near $13.80
Suggested Position: Buy July $12.50 CALL, current ask $2.45, estimated ask at entry $2.00
Entry on June xx
Earnings Date 7/29/2010(unconfirmed)
Average Daily Volume: 700,000
Listed on 6/8/10