One under-$10 name in the oil and gas complex that's trading within range of a major breakout trade is Triangle Petroleum (TPLM). This is an oil and gas exploration and development company focused primarily on resource properties consisting mainly of unconventional oil and gas reserves. This stock is down about 9% so far in 2012.
If you take a look at the chart for Triangle Petroleum, you'll notice that the bears hammered this stock during the last three months, with shares plunging from a high of $8.26 to a recent low of $4.63 a share. During that massive slide lower, shares of Triangle Petroleum have mostly made lower highs and lower lows, which is bearish technical price action. That said, this stock just put in a near-term double bottom at $4.68 to $4.63 a share. Shares of TPLM are also now trending very close to triggering a major breakout trade.Market players should now look for long-biased trades in TPLM if it can manage to trigger a breakout above its 50-day at $5.79 and its 200-day at $5.91, and then above some near-term overhead resistance at $5.95 a share with high-volume. Look for a sustained move or close above those levels on volume that hits near or well above its three-month average action of 485,105 shares. If we get that action soon, then TPLM could easily trend up toward its next significant overhead resistance levels at $6.89 to $7.60 a share. If you buy TPLM off weakness, then I would simply use a stop at around today's low of $5.25 a share. I would rather play this name off strength though on a move above both its 50-day and 200-day moving averages with volume. At last check, TPLM has hit an intraday high today of $5.65 on volume of over 250,000 shares. Some of that strength today is due to a research report from Wunderlich Securities, which gave the stock a buy rating an $8 price target.
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