PetroChina Gets Noticed, Needs Break
This column was originally published on RealMoney on Aug. 2 at 8:59 a.m. EDT. It's being republished as a bonus for TheStreet.com readers.
Some are opposed to it; some are for it. It's turned into a national debate, and not just on Wall Street.
And while everyone is so focused on this aspect of China and oil, they have largely missed the monster move in PetroChina (PTR).Since early June PetroChina has rallied $30 while Unocal, the one with the bidding war out there, has moved $6. But that's not what I find so amazing. What I find so amazing is that it took a move of that magnitude in PetroChina for the folks on TV to discover it. Yes, suddenly Monday I heard them start chatting about how great this stock has been. Heck, I was feeling poorly about having shown it as a positive chart back in early March because it subsequently did absolutely nothing for three months. But when a stock has moved like PetroChina has and no one notices it until it's had such a monster move, I tend to take notice. So Monday I pulled up a weekly chart on this stock and calculated an initial target. Lo and behold, the calculation measures to about $90. Keep in mind that these targets are not exact; they are meant to be general guides about where a stock might correct from, or even have a sideways move. This chart has done nothing wrong -- it hasn't made a lower high -- but when a stock has moved like this one has and it is in its target zone and the media begin to notice it, it's usually time for it to correct or take a rest.
It's always been my opinion that it pays to have more -- not fewer -- expert market views and analyses when you're making investing or trading decisions. That's why I recommend you take advantage of our free trial offer to TheStreet.com RealMoney premium Web site, where you'll get in-depth commentary and money-making strategies from over 50 Wall Street pros, including Jim Cramer. Take my advice -- try it now.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV