Rosetta Resources - ROSE - close: $47.70 change: +1.59

Stop Loss: 43.90
Target(s): 54.00
Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Headquartered in Houston, ROSE is a domestic oil and gas company focused on the U.S. The stock soared on its earnings report even though the company missed estimates by 8 cents. Revenues did come in better than expected. The stock has been consolidating sideways near $45 and its 50-dma the last several days, showing some resistance to the market's recent weakness. Now ROSE is poised to rally toward its highs.

I am suggesting small bullish positions now. We'll use a stop loss at 43.90. The $50.00 level is still overhead resistance but we're aiming for $54.00.

-Small Bullish Positions-

Suggested Position: buy ROSE stock @ current levels

- or -

buy the July $50 call (ROSE1116G50) current ask $2.35

Annotated chart:

Entry on May 26 at $xx.xx
Earnings Date 08/08/11 (unconfirmed)
Average Daily Volume: 967 thousand
Listed on May 25th, 2011