Upstream Stocks: 100-Day Moving Averages Show Strong Resistance


Jan. 28 2016, Updated 9:19 a.m. ET

Moving averages

The 100-day moving averages of upstream companies’ stocks have shown strong resistance. The ten large-capped upstream companies are trading 22% below their 100-day moving averages. Only EQT (EQT) and Cabot Oil & Gas (COG) managed to trade 3.8% and 3.2% below their respective 100-day moving averages.

This is close to the averages when compared to other upstream companies. For example, Marathon Oil (MRO) is trading 43% below its 100-day moving average, and that’s highest among the upstream companies. On the other hand, Anadarko Petroleum (APC) and Devon Energy (DVN) trade 39% and 36% below their respective 100-day moving averages.

Article continues below advertisement

Anadarko Petroleum’s 52-week highs were around $94.5 during April 2015. Since then, the stock has been in a continuous downtrend. Anadarko operates with a production mix of 51.2% in natural gas and 34.6% in crude oil. Additionally, the stock is trading near the psychological support level of $30. However, the support price of $30 stood firm in the subprime crisis in 2008 and also in 2010.

Wall Street analysts’ consensus estimates

The table above shows the moving averages and forward target prices of several US-based (SPY) upstream companies. Wall Street analysts’ consensus estimates suggest a 46.0% upside for these upstream companies. You can compare that to the 42.2% upside estimates for large-cap refineries. Over the next 12 months, EQT and Cabot Oil & Gas could rise by as much as 24% and 14.5%, respectively, from current levels.

Wall Street analysts’ estimates for three other major upstream companies over the next 12 months are as follows:

  • APC could see a 75% rise.
  • EOG Resources (EOG) could rise by 25%.
  • Apache (APA) could see a 22% rise.

More From Market Realist

  • Roger Altman
    How Evercore Chairman Roger Altman Made His Millions
  • ZeroHedge logo
    Financial Blog ZeroHedge's Controversial Foray Into Political News
  • George Clooney
    George Clooney’s $600K Tequila Investment Made Estimated $233 Million
  • WallStreetBets and silver advertisement
    Silver Squeeze 2.0 and Wall Street Silver, Explained
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.