Meanwhile, things are looking a little simpler in shares of Anadarko Petroleum ( APC). You don't have to be an expert technical analyst to figure out what's going on in shares of the $45 billion E&P firm -- a quick glance at the chart should do.
Anadarko is currently forming an uptrending channel, a price setup that's about as basic as a technical pattern gets: up is good, down is bad. The channel provides traders with a high-probability range for shares to stay within -- and now, with APC testing trendline support, traders are coming up on a big buying opportunity in this stock. After all, buying the last five bounces off of trendline support has been a good strategy this year.Buying off a support bounce makes sense for two big reasons: It's the spot where shares have the furthest to move up before they hit resistance, and it's the spot where the risk is the least (because shares have the least room to move lower before you know you're wrong). Remember, all trend lines do eventually break, but by actually waiting for the bounce to happen first, we're ensuring Anadarko can actually still catch a bid along that line. Keep a close eye on this name -- we could get the bounce in today's session.