Long Trade in AROCArchrock provides natural gas equipment, service and maintenance. This is an area of the market I mentioned seeing a lot of strength in over the last few weeks (see Market Leaders are Failing post), and AROC is one of the top performers.
The stock came out of a textbook consolidation base last month before climbing 25% in just two weeks.
After this parabolic move higher, shares have consolidated slightly to digest the action. But the pullback has been minimal – a sign that investors are still bidding up the stock.
With such a shallow base here, AROC could be bought with a stop loss at $12.30 to risk just 5% on the trade.
