Can Magellan Midstream Partners Gain Upward Momentum?



MMP’s moving averages

In this part of the series, we’ll try to find out whether Magellan Midstream Partners (MMP) can gain upward momentum following last week’s gains. Let’s start with moving average. MMP went above its short-term (50-day) moving average, driven by its recent gains. That might indicate a bullish sentiment in MMP. It was trading 1.0% above its 50-day SMA (simple moving average) and 5.4% below its 200-day SMA as of September 8, 2017. In comparison, MMP’s peers Buckeye Partners (BPL) and NuStar Energy (NS) were trading 7.8% and 6.4%, respectively, below their short-term moving averages.

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Short interest in MMP

Short interest in MMP was 28.1 million shares as of September 8, 2017. Short interest in MMP as a percentage of float ratio was 1.24%. That’s slightly higher than last month’s average of 1.18%. However, short interest in MMP is still lower than the last one-year and three-year averages of 1.45% and 1.86%, respectively. That might indicate a bullish sentiment in MMP.

MMP’s price forecast

MMP’s 30-day implied volatility was 14.2% as of September 8, 2017. Based on its current implied volatility, MMP stock might trade in the range of $67.98–$70.70 in the next seven days. It’s expected to be within this range 68.0% of the time. That assumes a normal distribution of prices.

For a comparative analysis of the largest US MLPs, including MMP, be sure to read In-Depth Analysis of the Top 4 MLPs: EPD, ETP, WPZ, and MMP.


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