Northern Oil & Gas - NOG - close 15.20 change +0.07 stop 14.25

Company Description:
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.

Target(s): 16.00, 16.50
Key Support/Resistance Areas: To Follow
Time Frame: 1 to 3 weeks

Why We Like It:
Oil and oil stocks should do well on the slightest prospects of an economic recovery. NOG is a land based driller with major assets in the Bakken region in North Dakota, which is one of the largest discoveries of proven oil reserves ever found in the United States. NOG is forming a bull flag on its daily chart and looks poised to breakout. The stock is consolidating above all of its major moving averages which should also help to provide support on any pullbacks. I suggest readers use a trigger $15.05 to initiate long positions. Our two targets are +6% and +9% higher. Our stop is below all of the moving averages and the recent upward trend line.

Suggested Position: Long NOG stock if it trades to $15.05

Options Traders: Buy October $15.00 CALL, current ask $1.15

Annotated daily chart:

Entry on September XX
Earnings 10/25/10 (unconfirmed)
Average Daily Volume: 506,000
Listed on September 8, 2010