DELAFIELD, Wis. (Stockpickr) -- These under-$10 oil and gas stocks were trading higher with strong upside volume on Wednesday. Here's how to trade them now.
Forest Oil (FST), an independent oil and gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids primarily in North America. This stock closed up 4.2% to $3.22 a share in Wednesday's trading session.
Wednesday's Range: $3.07-$3.26
52-Week Range: $2.85-$6.67
Thursday's Volume: 4.88 million
Three-Month Average Volume: 3.67 million
From a technical perspective, FST spiked sharply higher here with strong upside volume. This stock has been downtrending badly for the last four months and change, with shares sliding lower from its high of $6.52 to its recent low of $2.85. During that move, shares of FST have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of FST are now starting to come off its recent lows with strong upside volume flows. Market players should now look for a continuation move higher in the short-term if FST manages to take out Wednesday's high of $3.26 to its 50-day moving average of $3.40 with high volume.
Traders should now look for long-biased trades in FST as long as it's trending above Wednesday's low of $3.07 or above $3 and then once it sustains a move or close above $3.26 to $3.40 with volume that hits near or above 3.67 million shares. If that move materializes soon, then FST will set up to re-test or possibly take out its next major overhead resistance levels at $3.65 to $3.90, or even $4.50.