Trade Ideas Newsletter 04/27/2016

APA is poised for a contrarian breakout

Based upon the analysis above in APA, traders should make sure that their portfolio can handle increased risk from a new trade. Also be sure that APA adds diversification to your current account. Lastly, good traders note how a new addition relates to not just their portfolio but the rest of the market action as well. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Be sure to coincide your trading actions on APA in relation to the overall market as well.

CHART

Currently the proprietary sentiment levels, analysed by Traders For Wealth, have shown an increasingly negative bias toward APA. However, the price action in APA has been moving up in value. This could be a contrarian sign to traders for a potential reversal. Traders should view this as a bullish contrarian trade and make sure it aligns with the market and their portfolio.

Apache Corp (APA)

Apache Corporation (Apache) is an independent energy company, which explores for, develops, and produces natural gas, crude oil, and natural gas liquids. As of December 31, 2014, Apache had exploration and production interests in five countries: the United States, Canada, Egypt, Australia and the United Kingdom. During the year ended December 31, 2014, it participated in drilling 1,478 gross wells, with 1,407 (95%) completed as producers. As of December 31, 2013, in addition to its completed wells, several wells had not reached completion: 318 gross (214.7 net) in the United States; 27 gross (19.0 net) in Canada; 35 gross (32.5 net) in Egypt, and 3 gross (2.2 net) in the North Sea. The Company’s operations in United States and Canada are constituted under its North America business, while its International business constitutes its operations in Egypt, Australia and the United Kingdom in the North Sea.