NEW YORK (TheStreet) -- Shares of independent oil and gas exploration companies Anadarko Petroleum (APC) and Apache (APA) have rebounded with the price of crude oil and have year-to-date gains of 14% and 9.3%, respectively.
Anadarko is scheduled to report quarterly results after the closing bell on Monday, and Apache plans to report before the opening bell on Thursday. Both are expected to report losses of 62 to 63 cents a share.
Crude oil declined 61% from its June 13 high of $107.68 a barrel to its March 18 low of $42.03.
Shares of Apache had a peak of $104.57 well after crude oil peaked on July 31 and declined 48% to a low of $54.34 on Dec. 16 well before crude oil bottomed. Similarly, Anadarko didn't peak until Aug. 26 with a high of $113.51, and its share price drop of 37% also bottomed with a low of $71 on Dec. 16.
Let's look at the daily and weekly charts for Anadarko and Apache and provide the key technical levels at which to buy on weakness and the key technical levels at which to sell on strength.
Investors not familiar with technical analysis should begin with the notion that a price chart for a stock shows a road map of past price performance, which provides guidance for predicting future share price direction.
Here's how to read a daily chart: There are two moving averages to follow; the 50-day simple moving average is in blue, while the 200-day SMA is in green.
Here's how to read a weekly chart: This chart shows weekly price bars going back to the beginning of 2007 and thus includes the crash of 2008, then the current bull market for stocks that began in March 2009.
The red line tracks the ups and downs of the key weekly moving average. The green line is the 200-week SMA.
The red line that oscillates along the bottom of the chart is the momentum reading on a scale of 0 to 100. A reading below 20 is oversold, and a reading above 80 is overbought.