Next up this week is Norwegian oil stock Statoil ASA (STO). While Norway isn't on the euro (the country stuck with the krone), Statoil's status as a major oil producer means that the firm is still heavily impacted by the EU economy, albeit without the currency depreciation concerns felt by countries that report their numbers in euros.
From a technical perspective, Statoil has significant upside potential right now thanks to an ascending triangle that's been forming in shares since the beginning of November. Put simple, an ascending triangle is a pattern that's identified by a horizontal resistance level to the upside and uptrending support below. As shares bounce in between those two technically-relevant price levels, shares get squeezed against resistance, and the potential for a breakout above that barrier increases dramatically.
The breakout level to watch in Statoil right now is $27. That's the price that's acted as a ceiling for shares the previous three times buyers attempted to make a new high in share prices. When the breakout happens, I'd recommend placing a protective stop right at the 50-day moving average.Statoil, one of TheStreet Ratings' top-rated oil and gast stocks, shows up on a list of 7 U.S. Stock Picks for 2012 From Addison Capital.
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