Oil has been one of the best asset class performers in 2016, rising a stout 10% even as crude oil supplies are adjusted upward. Last weekend’s meeting between OPEC and non-OPEC members didn’t help oil, as they were unable to settle on a supply cut, thus putting even more pressure on the commodity. Yet, by the end of trading on Monday, crude finished barely lower. The charts/technicals have been telling the story for several weeks now – there is a strong bid under crude oil that is just relentless.
We would expect to see the major oil producers in the US to start performing, so let’s count Apache among them. This stock is a wild animal with violent swings up and down. However, this name is up a solid 20% in 2016 and looks ready to threaten recent highs. The indicators are solidly bullish with the stock trading in a wide bullish channel. Price action has been quite strong, and it’s putting massive pressure on the heavy short interest. A move toward the upper end of the channel (near 59) would be a nice advance, and multi-month lows would be exceeded.
Apache is a big player in the volatile Middle East, specifically Egypt, but it has a strong presence in the Gulf Coast states here in the US.
Apache (NYSE: APA) Video Chart Analysis
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About Apache
Apache Corporation, an independent energy company, explores, develops, and produces natural gas, crude oil, and natural gas liquids. It operates onshore and offshore assets primarily in the Permian Basin, the Anadarko basin in western Oklahoma, the Texas Panhandle, and Gulf Coast areas of the United States, as well as in Western Canada and Gulf of Mexico. The company also operates assets in Egypt and the United Kingdom in the North Sea. As of December 31, 2015, it had total estimated proved reserves of 794 million barrels of crude oil, 198 million barrels of natural gas liquids, and 3.4 trillion cubic feet of natural gas. Apache Corporation was founded in 1954 and is based in Houston, Texas.
