Buying long Cabot Oil & Gas
Updated
I've been watching this natural gas producer as it's one of the most productive gas producers with one of the best balance sheets out there in a highly beaten up industry. Their valuation is great despite some challenges in the natural gas industry, and they saw a huge selloff after worsened guidance recently. I'm now buying on this weakness.
Here is why:
Combine that with very low valuations, an a product (natural gas) that isn't quite as economically cyclical heading into a potentially recessionary environment, and I really like the outlook here.
Here is why:
- Daily Demark 13 exhaustion was just triggered. These have a wonderful history of timing reversals.
- Oversold on RSI all time spans
- Oversold on bollinger band moves
- Just hit the very long term lower trendline that has existed since before the GFC. It promptly touched and reversed, showing that the market recognizes this as resistance. At the bare minimum, we're likely to see a reversal within the next few weeks, possibly after retesting the trend or consolidating around it.
Combine that with very low valuations, an a product (natural gas) that isn't quite as economically cyclical heading into a potentially recessionary environment, and I really like the outlook here.
Note
And sold for 8% gain.
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