Cobalt International Energy
Nearest Resistance: $15
Nearest Support: N/A
Catalyst: Aegean Well Results
Cobalt International Energy (CIE) is getting sold off more than 8% this afternoon, after the firm released a statement that it was plugging and abandoning its Aegean number-one exploratory well in the Gulf of Mexico. CIE's drill didn't find commercial hydrocarbons, which means that it's back to square one for the project. After selling off more than 41% year-to-date, this latest hiccup is far from an ideal way to end the year.
A quick glimpse at CIE's chart is just about all you need to figure out its tradability right now. This resource stock is clearly broken. Resistance is in place at $15, and support is nowhere to be found at this point. If you're looking for a cheap buying opportunity in CIE, wait for shares to establish some semblance of support before you put money in this name; for now, it's a falling knife you don't want to catch.