Berry Petroleum Company (BRY), another of the oil stocks, has been on an uptrend since what appears to be a "hammer" formation on 1/23/08 (although some would argue that the "hammer" as early as 8/16/07 was the start of the bullish move).
The stock has been trending up since January in a very tight channel which is a good sign for the stock. The institutional investors have also thought this was a good stock, and they have been increasing their holdings (albeit slowly) in the stock. Additionally, the RSI (relative strength index) has been steadily increasing AND has recently crossed into positive territory placing BRY among the healthy stocks in the market (and possibly a future leader), even though the price is only in the high 50's and not in the hundreds such as other monsters in the group.
Technically, although the stock broke above the channel formation on 6/23/08 (which means that it is oversold and is a sell signal), it doesn't have that far down to correct before the stock is back in great shape. Currently, the 50-day moving average is at $54.41, which means that if the stock pulls back to this area and bases, a breakout from this area on high volume would be a very good thing for the stock.
ABOUT THIS BLOG
Welcome. The contents of this blog comprise my personal observations on the stock market from the perspective of using both fundamental and technical analysis by reviewing market data and stock charts based on the methodologies of William O'Neil of Investors Business Daily and his books, from Stan Weinstein's books, and most of all, through lessons learned over the years by listening to Gary Kaltbaum's "Investor's Edge" radio show on Business Talk Radio.
Criteria of stocks include first researching sectors to determine which are strong and which are weak using the ADX indicator (>40 = increased volatility); focusing in on a leading sector and buying leading stocks on a high volume breakout (minimum 2x average) above a base; stock prices are higher than $25/share with daily average volume higher than 300K; positive and increasing PVT (indicating institutional ownership), positive and increasing RSI (indicating relative strength compared to other stocks in the market).
Please keep in mind that I am by no means an expert, nor are my posts intended for anything other than to share my opinions of what stocks are doing for the purpose of getting feedback. Thus, please do your own research before taking action on what you read here. I will be adding posts on topics of interest as I learn about them.
Criteria of stocks include first researching sectors to determine which are strong and which are weak using the ADX indicator (>40 = increased volatility); focusing in on a leading sector and buying leading stocks on a high volume breakout (minimum 2x average) above a base; stock prices are higher than $25/share with daily average volume higher than 300K; positive and increasing PVT (indicating institutional ownership), positive and increasing RSI (indicating relative strength compared to other stocks in the market).
Please keep in mind that I am by no means an expert, nor are my posts intended for anything other than to share my opinions of what stocks are doing for the purpose of getting feedback. Thus, please do your own research before taking action on what you read here. I will be adding posts on topics of interest as I learn about them.
Thursday, June 26, 2008
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