Newfield Exploration (NFX) Stock: Major Buy Signal, 50% Long-Term Upside
NEW YORK (TheStreet) -- The longer-term chart of Newfield Exploration (NFX) is sending out a loud signal to buy it. The short-term chart will help us with the timing.
This first chart of NFX, above, reminds me to check the new-high list more often. NFX has been making new 52-week highs in the past month. NFX sold off this past spring and summer, but in a little over two months, it has retraced all those declines and has broken out on the upside. The uptrend is confirmed with the rise of the On-Balance-Volume (OBV) line. Note that the 50-day and 200-day simple moving averages are rising with the shorter one above the longer one. Last, the Moving Average Convergence Divergence (MACD) is in positive territory. All good.
This longer chart of NFX, above, is more compelling. Here we can see a four-year base formation. Prices are above the 40-week Moving Average, but what is really impressive is the strong two-year rise in the OBV line on this time frame. NFX appears to be under aggressive accumulation. This can potentially support a significant rally. A longer-term rally into the $60 to $70 area is what I would be looking for. Buy NFX here with a sell-stop below $37 for now.