Genesis Energy

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One stocks that insiders are loading up on here is Genesis Energy ( GEL), a limited partnership focused on the midstream segment of the oil and gas industry in the Gulf Coast region of the U.S. Insiders are buying this stock into some decent strength here, since shares are up around 20% so far in 2012.

Genesis Energy has a market cap of $2.67 billion and an enterprise value of $3.45 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 38.12 and a forward price-to-earnings of 24.75. Its estimated growth rate for this year is 27%, and for next year it's pegged at 20.4%. This is not a cash-rich company, since the total cash position on its balance sheet is $15.04 million and its total debt is $795.95 million.

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A director just bought 733,019 shares, or about $21.99 million worth of stock, at $30 per share.

From a technical perspective, GEL is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the past four months, with shares soaring from a low of $26.30 to its recent high of $35.18 a share. During that uptrend, shares of GEL have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed GEL within range of triggering a near-term breakout trade.

If you're bullish on GEL, then I would look for long-biased trades as long as it's trending above its 50-day at $32.46, and then once it breaks out above some near-term overhead resistance levels at $34.07 to $35.18 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 221,635 shares. If that breakout triggers soon, then GEL will have a great chance of trending north of $40 a share.

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