5 Technical Setups in Commodity Stocks
Plains All American Pipeline
A similar setup is occurring in shares of Plains All American Pipeline (PAA), a $10 billion oil and gas pipeline stock that currently pays out a 6.17% dividend yield. Plains broke out above a previous resistance level at $63 back in late October, and pushed through to new 52-week highs by the start of November, only to throw back to that newfound support level at $63 more recently. The ideal time to buy is on a bounce off that price.
Buying on the bounce is a crucial part of entering a throwback like either PAA or GLD. That's because support and resistance levels do eventually break; by waiting for a bounce, traders get added confirmation over the strength of that support level. They also see that shares have the investor demand required to spur more upside.
It looks like shares of Plains are bouncing early in today's session. If you decide to take this trade, I'd suggest keeping a protective stop at the 50-day moving average. A reasonable near-term target is just shy of PAA's 52-week high at $66.80.Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll 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.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
