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How Much Room Does Plains All American Have to Run?

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PAA trades above its 50-day and 200-day moving averages

Plains All American Pipeline (PAA) is currently trading 9.6% above its 50-day moving average and 28% above its 200-day moving average. The stock crossed its 50-day moving average in February 2016 and has mostly been trading above it since then, corresponding to the rise in energy commodity prices.

The above graph shows PAA’s stock movements, along with its 50-day and 200-day moving averages. The stock’s premium above the two averages indicates that its upward trend may continue in the short term.

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PAA’s year-to-date rise in 2016

PAA has risen 38% since the start of 2016. Other midstream energy companies ONEOK (OKE), Enbridge Energy Partners (EEP), and Sunoco Logistics Partners (SXL) have risen 101%, 9%, and 9%, respectively, in the same period. The Alerian MLP ETF (AMLP), which holds top infrastructure MLPs, has risen 5% since the start of 2016.

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