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Nearest Resistance: N/A
Nearest Support: $49.50
Catalyst: Sunoco Purchase
Energy Transfer Partners(ETP) is getting its fair share of search volume today after the $11.3 billion MLP announced that it would be acquiring
Sunoco (SUN) for $5.3 billion. The buyout dramatically expands ETP's business from primarily a pipeline company, adding refining and chemical manufacturing to the stock's repertoire. The news sent ETP close to 4% higher in yesterday's session, pushing ETP to a new 52-week high.
>>7 Energy Stocks That Investors Have All Wrong
From a technical standpoint, ETP's setup is attractive for the same reason as FIRE's is: new highs have good psychological effects on buyers. But there's more to it than just that. Shares of ETP had been forming a complex inverse head and shoulders pattern since the start of February; yesterday's breakout above the neckline adds another buy signal for shareholders.
With support close under foot, now's a good time to be a buyer of ETF with a tight
stop loss in place.